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After the rally comes the slump
Prices for important industrial and battery metals have now fallen sharply since their record highs at the beginning of the year.
This is due to the weakness of the Chinese economy. That is fuelling the existing oversupply on the international markets. The prices of copper, nickel, cobalt and lithium have recently plummeted. However, the low prices are unlikely to last.
In the long run, demand is expected to clearly outstrip supply. Without metals, no climate-neutral modernization of industry and no energy transition. It is therefore to be hoped that the current slump will not slow down the diversification of raw material sources.
So far, China's dominance in the supply chains has been virtually unbroken. From extraction and processing to many end products, China commands the supply. However, this increases the geopolitical risks - at the latest when demand picks up again, which is likely to be soon.
Source and further reading: https://www.allianz-trade.com/en_BE/news/latest-news/metals-price-drop-scares-green-energy-investors.html
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