The World Bank’s recent Commodity Markets Outlook predicts that metal prices will decrease by 8 percent in 2023 and another 3 percent in 2024. The bank’s mineral & metal pricing index increased 10 percent in the 1st qtr of 2023. Suggesting expectations for a robust recovery in China and stronger world growth prospects.
The bank claims that all metal prices increased for the quarter, especially those for tin & iron ore.
The bank stated that “this confidence decreased and by the close of the qtr. The most prices had declined from their Jan peaks.”
Due to the robust demand from China’s steel industry, iron ore prices are the only ones that are still stable.
According to Valerie Mercer-Blackman, A lead economist in the World Bank’s Prospects Group, “metal prices. Which rose marginally early in the year, are anticipated to decline by 8 percent relative to the previous year, primarily due to decreased worldwide demand and improved supplies.”
Metal Prices Forecast
Aluminium prices are predicted to decrease by 11 percent in 2023. As a result of an output recovery as short-term obstacles are removed.
Prices for copper are predicted to decline by 4 percent in 2023 from 2022 and by a further 6 percent in 2024 as supplies conditions increase.
In 2023, nickel prices are predicted to decline by 15 percent. This year, zinc prices are expected to decline by 20 percent. As a result of reducing energy costs and the restart of the majority of European smelters.
The energy shift, however, “could considerably lift demand for some metals. Particularly copper, lithium, & nickel, in the longer term,” according to Mercer-Blackman.
In 2023, precious metal prices are predicted to rise by 6 percent as demand for safe haven assets rises in the face of rising uncertainty on growth prospects in the future, continuing worries regarding inflation, and first-quarter financial strain.
In 2023, coal prices are predicted to drop by 42 percent.