The short-term summer rally in metal prices abruptly changed to the opposite trend, as the aggravation of the energy crisis in Europe and signs of a slowdown in production in China scared traders. Thus, the index of spot prices for metals calculated by S&P GSCI has decreased by more than 9% since mid-August. Since the beginning of 2022, it has fallen by 17%, despite the fact that after the beginning of the Ukrainian-Russian conflict, the indicator soared by more than a quarter. Copper (a barometer of global economic health) fell by about 6%, to almost $7,650 per ton, in just over a week. Iron ore prices have fallen below $100 per tonne compared to above $160 earlier this year. The decline in industrial metals prices suggests that concerns about global demand are coming to the fore again. Economists are confident that the rise in energy prices will hit the industry hard. Moreover, no one doubts the onset of a recession, and the only question that worries the markets is how deep this recession will be. It is also worth noting that gas prices in Europe jumped by 17% on Monday, approaching record highs reached at the end of last month. And the increase in gas costs raises concerns that large businesses and consumers will have to reduce consumption in order to reduce the size of electricity bills.
