Demand for 'green' metals looks bright says Laura Cha

The London Metal Exchange, which is owned by Hong Kong Exchanges and Clearing (0388), expects a global push towards a green economy will drive the demand for some metals but warns of the risk of stagflation.

Laura Cha Shih May-lung, the chairperson of HKEX, said in a forum yesterday that the demand for five types of metal will increase as the world strives to cut carbon emissions.

There is an increasing demand for copper, nickel, cobalt, silver and platinum as consumers, investors and governments around the world are accelerating their efforts for a sustainable environment, Cha said.

Also speaking at the forum yesterday, Ba Shusong, managing director and chief China economist of HKEX, warned that inflation in the United States and the energy shortage in Europe will lead to rising prices of commodities, although prices seem to have softened in recent months amid recession fears.

On the forex market, Ba said the market remains volatile as there is some mismatch between the international monetary system and the international economic system but the US dollar's dominant role cannot be replaced in the near future.

Ba also warned that the world seemed to be heading toward stagflation as in the 1980s.

Meanwhile, Nicolas Aguzin, chief executive of HKEX, said the bourse will expand the scope of mainland commodity-related products as China's pledge to reduce carbon emissions and efforts to promote infrastructure will stimulate demand for commodities.