Tuesday, 23 November 2021 13:39

Prices of construction and technology metals continue to rise, as well as fertilizers

Written by Evelyn Alas

According to an article by the World Bank (WB), most of the prices of base metals and agricultural inputs such as fertilizers continue to rise, driven by the global economic recovery, while production has been affected by energy shortages and confinements.

Base metals are essential to human life and without them the industrialized economy could not exist; they are raw materials that contribute to the development of a society and the entire world.

Base metals are iron, steel, tin, nickel, lead and zinc, which are used in almost every aspect of society, from transportation to energy, from housing to health care, from food to technology.

After reaching an all-time high in july, iron ore prices have declined rapidly, driven by China cutting steel production in order to meet zero growth targets for the year.

Tin prices have reached record high prices amid strong demand for electronic devices. Aluminum and zinc prices have also been boosted by high energy prices, causing some metal refineries to reduce or shut down production.

Fertilizer prices are on the rise.

The World Bank notes that rising prices for energy commodities, especially coal and natural gas, have sharply increased the costs of agricultural inputs, including fertilizers, which have risen by more than 55% since january.

In Europe two fertilizer manufacturing plants have suspended production due to the rising price of Liquefied Natural Gas (LNG). "About one third of the energy consumed by the agricultural sector goes to fertilizer manufacturing", expressed a media outlet on the European continent.

High energy prices forced some chemical companies to stop or reduce production capacity.

Higher input costs, together with the occurrence of the La Niña phenomenon, pose significant upside risks to agricultural prices, while ambitious biofuel targets may increase the prices of some grains and oilseeds in the long term.