Introduction
In 2021, the prices of the main export commodities of Latin America and the Caribbean (LAC) increased, mainly due to the recovery in global demand —particularly from China— for minerals, metals, fossil fuels and agricultural products, following the impact of the COVID-19 pandemic. In the first months of 2022, those upward trends, especially in hydrocarbon prices, have been strengthened by the conflict between the Russian Federation and Ukraine. However, the prices for each major commodity group (minerals, hydrocarbons, agricultural commodities) have performed differently. Similarly, there is heterogeneity in the behaviour of prices within each group, partly in response to factors specific to each product.
The increase in prices of minerals and metals was also due to the recovery of investment in construction and growth in demand for durable goods, such as automobiles, household appliances, and equipment and machinery. Energy transition is also expected to push up demand in the medium and long term for the metals needed for the production of electric vehicles, infrastructure and green technologies. This will increase the profitability of mining projects and attract new investments to the sector, which, on the other hand, could intensify the adverse impacts on economic, environmental and social considerations. Therefore, mining production and consumption activities should be decoupled from those negative impacts, and the higher revenues exploited to finance the change in the production structure, within the framework of the 2030 Agenda, avoiding a potential delay in the energy transition due to the increase in the prices of the minerals required for it.
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