Nick Pickens, Woodmac’s Research Director – Copper, says softening demand, stronger supply and weaker sentiment point to a year-on-year decline in average prices across the metals and mining industries in 2023:
“The construction sector, a key area for iron ore, steel and base metals, will be a drag on global demand, with the Chinese real estate market in particular remaining sluggish.
“Meanwhile, supplies of copper, aluminium, lead, zinc, iron ore and steel, among others will all post higher growth rates than in 2022. The production of battery materials – nickel, cobalt and lithium – will continue to forge ahead, following double digit-growth in 2022.”
Pickens does point out that there are some upside potential on the demand side next year, but “overall, we think the prevailing tendency in prices will be downwards”:
“Inflationary pressures are showing signs of easing, and so are supply-chain constraints. That…
