Fitch Ratings raises global metals and mining price assumptions

Fitch Ratings raises global metals and mining price assumptions
International ratings agency Fitch Ratings has increased its outlook for metal prices which have spiked due to the war in Ukraine and sanctions on Russia. / fitch
By bne IntelliNews March 22, 2022

International ratings agency Fitch Ratings has raised its metals and mining price assumptions on the back of soaring commodity prices related to the war in Ukraine.  

Fitch said the upgrade in its price outlook is “reflecting increased post-pandemic demand, tight markets and short-term supply disruptions, particularly due to the Russia-Ukraine conflict.”  

Some commodities also benefit from increased longer-term demand due to their role in global decarbonisation, the agency said.  

Fears of wider sanctions on the export of Russian commodities have sent several commodity prices to all-time highs. Trading in nickel was suspended on the London Metals Exchange (LME) last week after prices per tonne briefly topped $100,000. The exchange suspended trading and cancelled all deals from the previous few days until calm was restored on the market. Nickel was trading at $42,150 as of March 19, double the level since the start of this year.  

Iron, aluminium, gold, silver and copper are all up between 5% and 17% year to date as of March 19. Oil and gas prices have also spiked, with oil trading over $100 per barrel and gas prices on the Dutch hub having touched on prices that are twenty times higher than pre-war levels.