Stock image. As a result, after strong growth in 2021, Adams thinks that the base metals sector will now see an average quarterly EBITDA decrease of about 14%.
Speaking to The Northern Miner , Adams said he has concerns about the impact of the Russia-Ukraine conflict on the sector.
“The war will likely dampen consumption of many base metals as [supply] chains are interrupted. Russia is a big player and it‘s not like others can quickly fill the gap,” he said. “And this creates concerns. Couple that with the ‘r’ word [recession], and the impact on earnings for base metals could be significant.”
With global inflation currently exceeding what most expected, plus a war in Ukraine reducing Russia’s exports and then the added recent lockdowns in China that have shuttered parts of its domestic and international markets, the once staid base metals sector is facing challenges it has never seen.However, while these […]
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