Global Economy Braces for Slowdown: A Seismic Shift for Commodity Markets

As the world starts to show signs of a global sustained slowdown, caused by persistent inflation and aggressive monetary tightening by large central banks, commodity prices are falling to six year lows.  While this slow down and reduced demand are affecting some commodities more than others, there are a select few that are actually thriving, such as green energy commodities like copper, aluminum, lithium, and silver.  

If this reduced demand for certain commodities persist it could lead to supply chain issues in the long-run, leading to a potential variety of scenarios, such as a more synchronized global slowdown causing an even steeper price decline, a gradual slowdown with a larger gap in the old and new economy metals, a strong return in demand forcing prices up and global inflation to rise, and a "Great Divergence" in the different commodities due to the increased supply and decreased demand.

Moving forward, the commodities market will be uncertain and volatile, as the production of commodities becomes more expensive and the price decreases.  Investors should be looking at more commodity-based indicators now than in the past as commodity supply and demand influence the global market.

https://markets.financialcontent.com/wral/article/marketminute-2025-12-15-global-economy-braces-for-slowdown-a-seismic-shift-for-commodity-markets