METAL PRICES RUNNING WILD: IS THERE ANY BRAKE LEFT ON THE COMMODITIES MARKET?
Lately, the metal market resembles a rollercoaster more than a stable commodities market.
One week, copper soars towards record levels, the next week, steel and aluminum follow suit as if they don't want to be left behind. For companies working with metal on a daily basis, it sometimes feels as though prices no longer shift gradually, but in sudden leaps.
And that raises a question being asked increasingly often: where will this actually end?
What was once a reasonably stable commodities market now seems to be influenced by a mix of factors. The energy transition demands massive amounts of raw materials for electric cars, batteries, wind turbines, and new power grids. At the same time, supply is growing at a much slower pace.
Regulations also play a role. Europe is increasingly steering towards more sustainable production and stricter import rules. These are important steps toward a greener industry, but they also cause costs within the supply chain to shift, and ultimately, often rise.
The result is a metal market that has become significantly less predictable than many companies were used to. At Certilas, we also notice these developments on a daily basis. As a supplier of welding filler materials, Certilas stands right in the middle of the metalworking industry, and we see every day how raw material price trends ripple through the entire supply chain.
For filler materials in the welding industry, various metals and alloying elements play a crucial role. Consider nickel, aluminum, molybdenum, copper, and silver, for example. It is exactly these raw materials that have seen substantial price fluctuations in recent years, directly impacting the entire supply chain.
Nickel
Nickel is an essential element for stainless steel and high-performance alloys. It provides excellent corrosion resistance and strong performance at high temperatures. The price of nickel fluctuates significantly due to the growing demand from the battery sector and electric vehicles, which puts substantial additional pressure on the global market.
Copper
Copper is a crucial raw material for many industrial applications because of its excellent electrical and thermal conductivity. Due to the global energy transition and the rapid growth of data centers, the demand for copper has sharply increased. As a result, the price of this versatile metal has been under constant upward pressure for quite some time.
Tungsten
Tungsten is a remarkable metal known for its extremely high melting point and great wear resistance. It is widely used in applications involving extreme heat and heavy stress. In the welding world, tungsten plays a key role in TIG welding, where tungsten electrodes are used because of their unique stability and high heat resistance.
Aluminium
Aluminum is one of the most widely used metals thanks to its low weight and relatively high strength. Its price is often influenced by energy rates, as its production is highly energy-intensive. When energy prices rise or capacity is limited, this has a direct and noticeable effect on the market price.
Silver
Silver is widely used in high-quality soldering alloys and special joining techniques. The metal is known for its superior conductivity and excellent flow properties. The price often fluctuates because silver is both an industrial raw material and an investment metal. It can be found in electronics, solar panels, and various complex medical technologies.
Chromium
Chromium is indispensable for the production of stainless steel. This element provides a protective oxide layer that makes the underlying steel effectively corrosion-resistant. As a result, the demand for chromium is inextricably linked to global steel production. Furthermore, it gives metal surfaces a hard, shiny, and highly durable protective layer.
Molybdenum
Molybdenum is primarily used as an alloying element to make steel harder and stronger at high temperatures. It improves corrosion resistance in aggressive environments, such as in the chemical industry. Due to its high melting point, it is essential for components in rockets, aircraft engines, and other specialized industrial applications.
Manganese
Manganese is a vital element in the production of iron and steel, where it serves to remove impurities. It significantly increases the strength, toughness, and wear resistance of steel alloys. Additionally, manganese is playing an increasingly important role in the production of batteries for electric vehicles, similar to the trend seen with nickel.
When the prices of these metals fluctuate, it resonates through almost the entire industrial chain: from mining and steel production to mechanical engineering and welding technology.
For companies, this means that raw material prices are increasingly becoming part of strategic planning. This is exactly why knowledge of materials, alloys, and applications is more important than ever. As a specialist in filler materials, Certilas works with these materials daily and closely monitors market developments. With that, one question remains central: where is this heading?
It is quite possible that we are partly dealing with temporary peaks, as we often see in commodity markets. At the same time, many signs indicate that metals are becoming increasingly important for global industry and the energy transition. And as raw materials become more strategic, their price dynamics often change as well.
For companies, this means that flexibility, efficient use of materials, and reliable partners in the supply chain are becoming more crucial than ever. In a market that is changing at an accelerating pace, material knowledge and reliable delivery are increasingly vital. That is why Certilas continuously monitors these developments to support customers with the right filler materials and technical expertise.
Instantly see the influence of alloying elements on your weld pool and find the right CEWELD® filler material.