According to HSBC chief economist Paul Bloxham, global commodity markets are in a “super tight” state due to supply disruptions and lack of investment.
An oil tanker moves on Egypt’s Suez Canal. (Image: VNA)
In an interview with CNBC, HSBC chief economist Paul Bloxham said the global commodity market is in a “super tight” state due to supply disruptions and lack of investment. The situation will get worse under the impact of geopolitical risks and climate change.
According to Mr. Bloxham, the tightening is reflected in higher prices due to supply constraints rather than strong demand growth. He said supply-side factors still play an important role in keeping commodity prices high, alongside other issues such as political instability, climate change and lack of investment in the transition sector. to green energy.
The squeeze could worsen or last longer if issues related to geopolitics, climate change or energy transition hit harder than expected.
Climate change often disrupts supply chains as well as the supply of goods, especially in the agricultural sector.
According to Mr. Bloxham, the world’s pursuit of a carbon-free future is driving demand for metals that support the energy transition such as copper and nickel.
However, there is not enough investment allocated to procuring these important minerals. This situation leads to tighter supplies of metals – especially copper, aluminum and nickel.
At the recent COP28 climate change conference, more than 60 countries supported a plan to triple global renewable energy capacity by 2030. This is a step forward for the energy transition. and increased demand for metals needed for the transition.
According to VietnamBiz.vn
