Having resided in Russia, Eugene (Evgueni) Maftsir is a New Jersey entrepreneur who facilitates commodities trading and bridge loans as head of Elbron Holdings. With commodities prices volatile in 2021, Eugene Maftsir has witnessed an overall upward related to restarting economies a deficit in key metals used in industrial manufacturing.
Through August 2021, supplies of such metals continued to be lower than demand, with this deficit forecast to last through 2023 in many cases and potentially drive prices higher. One example is lithium, a high-value metal used in batteries that power electric vehicles, 5G devices, and energy storage systems. Supply shortages have been common with demand for such products high across China, Europe, and North America. This resulted in a year-to-date (YTD) return through August on lithium of a healthy 90 percent.
Widely used in everything from cars to smartphones, aluminum is a relatively common metal that has also experienced supply chain disruptions. One challenge involves China, the world’s leading aluminum producer, seeking to curtail the industry and curb CO2 emissions. At the same time, shipments from emerging exporters have been canceled and delayed due to the ripple effects of the pandemic. While there has been just enough supply to meet demand, prices increased 30 percent YTD through August.
Other commodities on an upward trend have been cobalt, used in batteries, and palladium, used in automobile catalytic converters that limit vehicle emissions. However, with the reflation trade fading in September, some experts recommend holding off on purchases until future spikes occur.
