Mubasher: Moody’s Investors Service has changed its outlook for the global metals and mining market to ‘Stable’ from ‘Positive’.
This amendment came in line with expectations for commodity price growth to fade out through 2022.
Moody´s stressed that despite the projection that prices for most metals would exceed historic levels through late 2022, they won´t improve. Aluminum prices would remain elevated through at least mid-2022, while copper prices are forecast to remain strong through at least late 2022 compared to historical averages.
Overall demand for metals and mining will likely remain robust through 2022.
Moody´s Senior Vice President, Barbara Mattos, said: "We expect industry's EBITDA to increase by about 8% through mid-2022 based on economic recovery supporting demand for base metals, iron ore, steel, and coal."
Iron ore prices are predicted to gradually reach their $70 to $80 per tonne average levels of 2016-19 beyond 2022.
Steel supplies will likely continue to increase, with productivity improving and new capacity coming online in certain parts across the globe.