Metal prospects rosier in 2024

INQUIRER FILE PHOTO

MANILA, Philippines —The Chamber of Mines of the Philippines (COMP) is expecting the demand for metals, especially copper, to be “relatively higher” this year on the back of the global shift to green energy.

COMP chair Michael Toledo on Monday said the uptrend in copper demand will also be driven by limited supply since no new mining projects will come on-stream in the next few years.

“This would likely result in higher copper prices, as can be seen in end-May 2024 compared to the same period last year,” Toledo said in a message to reporters.

READ: Copper industry warns of looming supply gap without more mines

Toledo said that, in addition, a steady limonite market and increasing interest from Indonesian smelters could act as a tailwind for nickel.

Opportunity for PH

He said the Philippines “has the opportunity to fill in the gap” caused by tensions in New Caledonia where there is a wave of civil unrest.

READ: Copper price tops $10,000 for the first time in two years

According to a Reuters report, the French territory possesses the fifth-largest nickel reserves globally and ranks third in nickel production.

“Offer prices have already improved and we have reason to be optimistic that these developments will translate into better transaction prices as well,” Toledo said.

He also said the long-term prospects of gold as an investment and store of value “are very positive” amid global geopolitics.

“Gold price(s), which have grown in value owing to increasing demand from central banks worldwide, will still be largely affected by global geopolitics and US response to inflationary pressures,” he added.

The country’s metal production slowed down in the first quarter of 2024 by 12.8 percent to P51.81 billion from P59.39 billion year-on-year, based on a report by the Mines and Geosciences Bureau (MGB).

According to the MGB, this was mainly attributed to metal price cutbacks and the slowdown in mine production.