According to the latest report from Moody 's Investors Service, the global outlook for the metals and mining industry has changed from positive to stable. Most metals prices are above historical values, but no record is planned for next year.
High current price levels are expected to disappear despite expected strong overall demand for metals and mining products during this period. Moody 's notes that prices for most non-ferrous metals are showing signs of stabilization next year, after hitting record highs this year.
“We expect the industry's earnings before interest, taxes, depreciation and amortization to increase by about 8% by mid-2022, driven by economic recovery supporting demand for non-ferrous metals, iron ore, steel and coal,” explains the senior vice -President of Moody 's Barbara Mattos.
In its report, covering the medium-term outlook for iron ore, steel, coal, aluminum, gold, silver, nickel, copper and zinc, Moody 's expects most prices to exceed historical values.
For base metals, aluminum prices are expected to remain high at least until the middle of next year and remain above $ 2,600 per tonne.
The agency also expects copper prices to remain high at least until the end of 2022, compared with historical averages, and a structural deficit will keep copper prices high over the longer term.
Metal prices will be supported by coal processing and growing demand for copper from electric vehicles.
