Commodity Shortages and Fragile Supply Chains Indicate Price Spikes Ahead for “Future Facing” Metals


Can end-users and governments ensure a supply of speciality metals for the green revolution?

The recovery of economic activity around the world in the wake of the COVID-19 crisis offers a return to prosperity for businesses and consumers, as well as a chance for governments to “build back better”. Yet as optimism grows, a fast-developing shortage of critical materials threatens a reality-check for executives and policymakers. The current global shortage of semiconductor chips is a prime example of such supply-side issues, having resulted in 1.4m fewer cars being produced worldwide during Q1 2021, and seems likely to persist given the higher volumes of semiconductors required for electric vehicles.  We believe the semiconductor shortage can be seen in the context of a much larger issue for green technology manufacturers and governments around the world, in terms of supply chain management in an increasingly uncertain and polarised world.


BAKERSTEEL Electrum Fund offers exposure to the transformational bull market underway for speciality metals and is positioned to benefit from both the longer-term growth of green industries, as the green revolution gains pace, as well as from shorter-term price movements and price spikes. As active investment managers, our team allocates strategically across sub-sectors of the mining industry to achieve exposure to these long-term themes which drive metals and mining.  

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