The group includes critical minerals needed for electric vehicles, solar panels, AI infrastructure and other technologies powering the energy and digital transitions.
Global commodity prices rose 4.8% year-on-year in March, driven by soaring demand for minerals and metals, according to new data released by UN Trade and Development (UNCTAD) on 6 May.
Prices for minerals, ores and metals surged 23.6% year-on-year, hitting an all-time high. Precious metals led the group, with prices jumping 37.4% compared to March 2024.
Price increases were also seen for food (+6.6%), and agricultural raw materials (+3.1%). In contrast, fuel prices dropped 3.0% during the same period, weighing on broader trends.
Overall, commodity prices fell 2.3% in 2024, continuing a decline from their 2022 peak. But excluding fuels, the UNCTAD Commodity Price Index reached its highest level ever, reflecting strong demand for the raw materials needed for the global energy and digital transitions.
Critical minerals: Strategic assets reshaping trade and development
The minerals, ores and metals group includes critical minerals such as copper, lithium, nickel and cobalt – key inputs for electric vehicles, solar panels, AI infrastructure and other technologies powering the energy and digital transitions.
Critical minerals are becoming strategic assets, shaping trade, investment and development. Tracking commodity prices is essential as demand shifts.
UNCTAD’s latest Global Trade Update puts copper in the spotlight, asserting that it is a test case for trade in critical minerals.
Global demand for the metal is projected to rise over 40% by 2040, but supply is struggling to keep pace. Meeting projected needs would require 80 new mines and $250 billion in investment by 2030.
More than half of global copper reserves are located in just five countries, raising concerns over concentrated supply. Mine development timelines of up to 25 years, declining ore grades and rising geopolitical tensions further compound the challenges.
The report says a looming copper shortfall would stall clean energy and digital transitions. It urges faster permitting, stronger partnerships and diversified trade to close the gap.
Trade barriers limit value addition in developing countries
UNCTAD also calls for smarter trade and industrial policies to help developing countries move up the copper value chain.
Most copper-rich developing countries remain trapped as the role of exporters of raw materials with limited returns. Most of the value lies further up stream – in processed products like wires, tubes and sheets.
To move up the value chain, countries must invest in refining, processing and manufacturing, the report says, calling for investment in local value addition, scaled-up recycling and the removal of trade barriers that limit opportunity.