Soaring energy prices have given a renewed boost to industrial metals prices in recent months but, if we are right, and power costs ease back from April, we think prices will fall sharply later in 2022. After all, demand for metal from key consumer China has already fallen a long way and is likely to remain subdued throughout the rest of the year, particularly in the metals-intensive construction sector. Meanwhile, tensions between Russia and Ukraine have been stoking self-haven demand for precious metals. However, assuming there are no-long lasting repercussions, we think prices will fall as rising US real yields will curb investment demand and result in a somewhat stronger US dollar.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services