Jonathan Barratt, chief investment officer (CIO) at Probis Securities, said on Tuesday that metal prices could rise another 10%.
Shares of metallurgical companies soared on October 18 amid rising global base metal prices, which was a boon for these companies. A rise in metal prices will push up the achievements and, in turn, improve the profitability of the metal companies.
“The prices can continue; copper near or at an all time high. It’s very difficult to try to look at the situation when the prices keep moving here, when you see this shortage of supply. China’s GDP, as we have seen, has returned; a little trickle there could help contain moving prices. I think we will see the prices increase by an additional 10%. It really depends on how it looks, as well as how we prepare for the pandemic (COVID-19), ”Barratt said, in an interview with CNBC-TV18.
Regarding the pressure of supply, he said: “It is obviously a very strong movement at all levels. When the metals go up, you try to find the main reasons. And it looks like a lot of supply issues cut across much of the commodity space. The spread between the spot market and the three-month mark has reached record highs near $ 1,000, indicating that there is no short-term supply and people will have to wait long. run to get adjust. So it’s here for a while and any shock will actually confirm the increases we’re seeing right now. “
Barratt believes crude oil prices are leveling off. “For the rest of the year, we might see a peak naturally through a hurricane or some other area, but at the end of the day you’ll see supply meet demand and prices should contain,” did he declare.
For the full interview, watch the video
(Edited by : Dipikka Gosh)