CE Metals
Over the last few years we have noted some of the more extreme changes in CE material pricing and given the new geopolitical environment we are currently in, we thought it important to take a quick look at the pricing of a few of the more important metals used in CE products. The Russian-Ukraine war has obviously caused spikes in many commodities, some of which have been facing increases due to COVID-19 and the supply chain issues it has caused, but while the three shown below have seen big price increases due to the recent hostilities in Europe, two of the three have already begun to subside and while they will likely take time to stabilize as US and European sanctions against Russia continue, the spot price extremes will likely dissipate.
That said, the increased tension could leave the previous increases intact and set a higher average until real demand begins to return to more historic levels, which we would have expected around mid-year 2022 for many CE products before the hostilities. We expect safety stocking will continue to keep price momentum upward until some real signs of a cease-fire or negotiations are seen, but the glass half full view says if this had happened in the 3rd quarter of this year when production begins for the holidays, it could have been much worse.
That said, the increased tension could leave the previous increases intact and set a higher average until real demand begins to return to more historic levels, which we would have expected around mid-year 2022 for many CE products before the hostilities. We expect safety stocking will continue to keep price momentum upward until some real signs of a cease-fire or negotiations are seen, but the glass half full view says if this had happened in the 3rd quarter of this year when production begins for the holidays, it could have been much worse.
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