In his updated forecast, Fitch said that in the short term, metal prices will rise significantly as the global economic recovery will reduce existing limited reserves. In addition, Fitch announced its forecasts for 2021, 2022 and 2023 for gold prices. According to the famous company, gold prices will decrease to a level of US $ 1,200 / ounce in the medium term.
Giant company Fitch: Metal prices will rise significantly
The giant company Fitch included the following important statements in its new report:
FITCH RATİNGS REVISED SOME ASSUMPTIONS OF METAL AND MINING PRICES BECAUSE THAT MANY COMMODITY PRICES WILL BENEFIT FROM RENEWED REQUESTS IN A SHORT TERM. BUT SUPPLY RESPONSE STAYS SLOW AND STOCKS ARE OUT OF STOCK.
According to Fitch, the biggest short-term beneficiary will be iron ore due to the tight market supply that is expected to continue over the next few years. Fitch stated that it predicts iron ore prices to trade at $ 125, compared to the previous forecast of $ 90. Fitch made the following statements on the subject in his new report:
VALE DROPPED THE MANUFACTURING GUIDE FOR 2021 AND THAT WAS NOT RESPONDING TO THE INCREASING DEMAND. WHERE ALL LARGE-SCALE IRON ORE MANUFACTURERS OPERATE WITH ALMOST FULL CAPACITY… STOCKS ARE DECREASING BUT WE ARE WAITING FOR ADDITIONAL DEMAND LINKING TO THE ECONOMIC REVIVAL OF THE USA AND EUROPE.
Fitch: Copper price to see $ 7,200 per ton
Copper is on the list due to the metal's supply risks, while Fitch predicts $ 7,200 per ton from its previous forecast of $ 6,000. This is still a conservative estimate, given that copper was traded for over $ 9,000 in February. Fitch made the following statements on the subject:
WE INCREASED THE SHORT-TERM COPPER PRICE ASSUMPTION DUE TO THE STRATEGIC PURCHASES OF THE CHINA STATE RESERVE OFFICE AND THE SUPPLY RISKS IN 2021. INCLUDING THE RENEWAL OF BUSINESS CONTRACTS THAT CAN RESULT IN A STRIKE IN CHILE AND PERU ... BECAUSE IT IS USED IN COPPER CHARGING INFRASTRUCTURE, CABLES, ELECTRIC VEHICLES, WIND GENERATORS AND TRANSFORMERS WITH LARGE PRICE
Famous company: Zinc prices will also see significant increases
Zinc prices will also see significant increases, according to Fitch, due to the rising demand in China. But Fitch sees production catching up "relatively fast". It is estimated that zinc will fall to $ 2,500 per ton in 2021 and to $ 2,100 in 2023.
Fitch explained: Gold will be at these levels in 2021, 2022 and 2023!
Aluminum's 2021 forecast was also increased from $ 1,650 to $ 1,950. However, according to the report, the outlook for gold is much lower despite the upward revision in prices. Fitch raised its price forecast for 2021 from $ 1,400 to $ 1,600 per ONS.
However, the forecast is still $ 127 lower than current trading levels that some analysts think are currently oversold. On top of that, Fitch sees more gold price weaknesses over the next few years. According to the giant company, gold prices will be traded at $ 1,400 for 2022 and $ 1,200 for 2023. Fitch made the following statements on the subject:
WE HAVE INCREASED THE GOLD PRICES ASSUMPTIONS FOR 2021 AND 2022 ON DUE TO INCREASING DEMAND DUE TO INVESTMENT FLOWS AND CENTRAL BANK PURCHASES. WE BELIEVE THAT THE PRICES WILL DECREASE TO A BALANCE OF 1,200 USD / TEN IN THE MEDIUM TERM
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