Steppes Alternative Asset Management believe that the overall requirement for natural resources is going to increase significantly in the medium and long term due to demand pressure. This being said, for mining and metals companies, COVID-19 is disrupting the entire value chain and in order to protect their people organizations have implanted a range of measures from travel bans, access restrictions (offices, mine sites and manufacturing facilities) reacting to the disruption cause by the impact of COVID-19 and migrating to the New Normal on how workplaces operate and how people function.
The length and severity of the impact is still not entirely known. Leaders are preparing for medium to long term strategies while also developing new capabilities and ways of working that will seamlessly enable longer-term changes to how they operate.
The current price outlook for certain commodities with short term over supply is forecast to be at least constant between now and 2025, with commodities without oversupply forecasting steady price growth over the same period.