Blackrock: Commodity Prices to Remain High

by | 20. Jan 2022 - 15:28 | Finances

Measures to achieve climate neutrality will drive commodity demand, according to manager Evy Hambro.

The boom in the commodities market and the high valuations of the companies that extract them are likely to continue for decades, according to investment firm BlackRock. That’s because of global efforts to reduce emissions that harm the climate, BlackRock manager Evy Hambro told BloombergTV last week.

He said strong demand for commodities such as copper has already helped mining companies post strong profits, but the sector is still undervalued. This will change as soon as investors become aware of the companies’ importance in efforts to achieve climate neutrality, Hambro added.

Not explicitly mentioned, however, other raw materials besides copper that are necessary for zero-emission power generation and mobility are likely to benefit from the price trend. For example, technology metals such as gallium (thin-film solar modules), neodymium (wind turbines, e-mobility) or lithium (battery technology).

Photo: iStock/peshkov