Posted 1/26/2024, 3:31:16 AM
Global Commodity Markets Squeezed by Supply Constraints Causing Price Surges
- Commodity markets are squeezed by supply constraints more than demand growth, causing higher prices - "super squeeze"
- Geopolitical conflicts like Ukraine war and climate change are disrupting global trade and supply chains
- Lack of investment in exploration and production of metals needed for renewable energy transition
- Iron ore prices rising due to falling inventories and limited new mining capacity
- Outlook uncertain - squeeze could persist if geopolitical and climate disruptions continue, or ease if global economy slows further