The Ukrainian-Russian conflict is causing all the price metrics we’ve seen since the first invasion of Ukraine. These world events will have significant ripple effects on markets and commodities in general, especially when you start to think about the oil impact we are seeing. These oil prices affect everything and people/traders are afraid or hesitant about where to get the next commodity push for things like electric vehicle stations or simple electronics.
We’ve seen a big change in the commodity market in the last two weeks, and it’s all due to disruptions from Ukraine and Russia. These oil markets have climbed to prices not seen since 2008 (with inflation, the real high of gas will be above $5.00 per gallon, which is still 17% away).
How did we get here last year?
In Washington DC, we saw a new administration change energy policies, which led to one of the major price increases. With oil and other energy prices rising (even before the Ukrainian crisis started), we’ve seen copper and other metals rise. Copper prices were rising as we saw more pressure on electric vehicles and charging stations, but we saw the increase due to other factors. Metal scrap yard near me you can contact us for the most accurate prices.
When will it fall?
So expect to see a market that will bounce up and down like a kid on a pogo stick for the first time. Sure there will be mini success rates, but there will also be big stumbles and falls on the way. It’s never a good thing when markets go up so fast because it’s mainly based on fear of buying and not for real business reasons.
We see investors who are not even part of the commodity space increasing their interest in copper, as it can become a trading tool like other stocks. While Russia produces 3-5% of the world’s copper, we do not see this as the factor that moves the markets so fast, according to different sources.
Copper prices were up 11% ($0.50 per lb) in the week 2/28-3/4, but on Monday 3/7, we saw a massive $0.23 market drop in the hours after the market open. These spikes and dips will hurt the market as a whole because it will be harder and harder to predict. Investors and consumers love stable markets, and this instability will lead electronics and auto manufacturers to add additional costs to their new vehicles and products, eventually pushing them towards consumers.