Anastasia Levchenko, Researcher at the Gaidar Institute's Industrial Organization and Infrastructure Economics Department, explained the latest significant rise in quotations for non-ferrous metals such as aluminum, copper, and zinc in a comment for Prime.
According to the expert, the dynamic of non-ferrous metal prices traditionally follows the gold prices, which is reaching historic highs. "When gold reaches record highs, some investors begin to look for alternatives, which can redirect capital to other metals, including platinum and silver, as well as non-ferrous metals. Also, during periods of instability, investors may simultaneously show interest in both defensive assets (gold) and commodities (non-ferrous metals), anticipating their shortage in the future. This creates a general upward trend in commodity markets," noted Anastasia Levchenko.
At the same time, the expert emphasized that, unlike gold, non-ferrous metals are directly influenced by industrial demand. “The demand for non-ferrous metals (copper, aluminum, zinc, nickel) is indusatrial demand. It is directly linked to the pace of global economic growth, construction, and manufacturing,” clarified Anastasia Levchenko.
Among other growth factors, she highlighted foreign trade conflicts, low aluminum exchange stocks, and operational problems at some copper producers. As for zinc, according to the expert, its market is characterized by overproduction, but low exchange stocks continue to support high prices.