Europe and the USA demand for metal has sharply increased, prices are up
2022.11.22 23:56
Europe and the USA demand for metal has sharply increased, prices are up
Budrigannews.com – In Singapore, the executive chairman of Trafigura stated that demand from China, Europe, and the United States, in addition to a rise in electrification in those regions, has become a major driver of global metal prices.
Jeremy Weir stated Wednesday at the FT Commodities Asia Summit that Chinese demand, which consumes approximately half of all metals worldwide, had previously been the primary driver of prices.
As a result of a global push by governments and automakers to increase the production of electric vehicles, European businesses are subject to regulatory pressure to reduce their carbon footprints.The remarks were made with this movement in mind.
Weir said that some countries have started to realize that China has most of the capacity to mine and smelt some important metals for the energy transition.This is inconsistent with their supply security over the long term.
He stated that in order for the industry to develop the metals required to meet their requirements for the energy transition, these governments must approve new mines more effectively without lowering standards.
In light of the energy chaos that has resulted from the crisis in Ukraine, Weir stated that Europe has done a reasonable job of decreasing its reliance on supplies supplied by Russia.
Weir anticipated that Europe would be able to avoid a gas shortage this year because the continent’s storage is currently “very robust” and the winter is anticipated to be mild.
Since Russia’s first invasion of the Ukraine in February, Weir stated that Trafigura has complied with European sanctions and significantly reduced its oil trade with Russia.He added that thus, various recently settled or independent ventures have used classic vessels to ship Russian oil toward the East.
Weir added that employing less skilled individuals to transport larger quantities of oil over longer distances poses a “high risk of accidents.”
