Moody’s, the credit rating agency, on Monday lowered its outlook for global metals and mining to stable from positive as commodity prices rose prime which vanishes in 2022.
Although the prices of most minerals will surpass their historical levels by the end of 2022, prices will not continue to improve, according to the agency. in a report seen by Al Arabiya.net.
“We expect the sector’s earnings before interest, taxes, depreciation and amortization to increase by 8% through mid-2022, based on the economic recovery that supports the demand for base metals, which are iron ore, steel and coal. “, the agency said.
The prices of the main metals show stability in 2022, after hitting all-time highs in 2021.
Among base metals, aluminum prices will continue to rise until at least mid-2022 and copper prices will continue to record strong performance until the end of 2022 at least compared to their historical average prices.
Iron ore prices will gradually move towards the $ 70-80 per ton level beyond 2022, which is their average price over the period from 2016 to 2019.
Coal prices will remain relatively high, but will decline as supply problems and geopolitical disputes subside.
At the same time, the imbalance between supply and demand for iron in the whole world will return until 2022, with prices gradually falling towards their historical averages after the big rises reached in 2021.
Demand will decline as shoppers replenish stock, incentive spending will decrease, and consumers will come back for more in general expenditure on trials as vaccines become more widespread.
Steel supplies will also continue to increase, with higher productivity and new capacities approaching the market in some parts of the world.
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