The investment bank Galt&Taggart publishes a report on commodities export from Georgia, including ammonium nitrate, copper concentrates, gold and ferroalloys.
As for the long-term prospects, the copper market is expected to grow, as it is a raw material and apart from the real estate market, it is also used in the electric vehicles production and renewable energy.
In January-May 2023, copper concentrates imports to Georgia declined to $176 million, exports - $316 million.
Ferroalloys are another major export commodity from Georgia.
In June 2023, copper price was up 2.7% m/m. Thus far in 2023, the price of copper has demonstrated relative stability, fluctuating between US$8,500 and US$9,000 per ton. This can be attributed to a slower-than-anticipated post-pandemic economic recovery in China and a deceleration in the real estate sectors of certain advanced economies. Nevertheless, the long-term prospects for this commodity remain positive due to its critical role in renewable energy systems and the production of electric vehicles.
In June 2023, prices of Chinese and European ferrosilicon were down by 6.7% m/m and 4.3% m/m, respectively. After reaching their highest levels in 2021, the prices of ferroalloys experienced a sudden increase during the initial stages of the RussiaUkraine war. However, the combination of the Chinese property sector crisis and the zero-COVID policy, along with negative economic sentiments in Europe, has exerted downward pressure on demand since 2H22. Despite China's economic recovery in 2023, there has been no notable positive impact on the prices of ferroalloys.
In 5 months of 2023, the export of ferroalloys from Georgia declined by 69.7% and stood at $86 million.
