Metals markets remain fundamentally in the "supercycle" identified in recent years despite the current global economic slowdown and fallback in prices, with demand for a wide range of metals to continue being driven by what is an "irreversible" global energy transition, according to Benedikt Sobotka, CEO of diversified miner Eurasian Resources Group.
"The fundamental supercycle in metals is very much intact: renewables are metals-intensive," Sobotka told S&P Global Commodity Insights in an interview. "Particularly in Europe the current energy crisis is only going to accelerate the energy transition: billions of dollars are being invested in wind and solar, while nuclear is being revived in some areas. This means millions of tons of steel, aluminium, rare earths and battery metals: and copper is needed when we use the internet."
Most steel and metals prices have plunged since March, when Russia's Feb. 24 invasion of Ukraine sparked a price spike on supply chain fears. Soaring energy bills and inflationary pressures, coupled with the dollar's strength, have eroded market demand and investor sentiment.
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