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Metals prices set for 'historically above-average prices through to 2025' – S&P Global Market Intelligence

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(Kitco News) With inflation fears and supply chain concerns, the metals price outlook remains very positive looking towards 2025, according to S&P Global Market Intelligence.

Key drivers for this decade will be strong demand stemming from the electronic vehicles energy transition.

"The metals sector is set to continue its rebound from the effects of the COVID-19 pandemic through 2022. Pent-up consumer spending, government stimulus efforts and the accelerating energy transition will continue to drive demand, prices and exploration budgets," S&P Global Market Intelligence said in its 2022 Metals and Mining Outlook.

Demand for the global metals sector may ease next year as some supply chain issues resolve, but the outlook beyond this remains very positive.

Additional demand will come from the growth of the electric vehicle sector and the energy transition, S&P Global Market Intelligence said.

"While we anticipate that metals prices will slip moderately in 2022 from their current highs, medium-term supply constraints are setting the stage for historically above-average prices through to 2025 – driven mostly by increasing demand for materials used in the accelerating global energy transition," said Mark Ferguson, research director with S&P Global Market Intelligence's Metals and Mining Research team.

Stronger demand and higher metals prices are estimated to boost exploration budgets by 15% in 2022. However, the overall total is still expected to remain below the record $20.5 billion seen in 2012.

The report also highlighted a healthy copper demand outlook in light of developments in the EV space and solar and energy generation.

"We forecast global copper demand from solar and wind energy generation to reach 852,000 tonnes by 2022 and the growing electric vehicle market to account for 1.1 million tonnes in 2022," the report said.

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