Citi: If the Russia-Ukraine conflict is resolved, the production cost of base metals may decrease.

On February 19, the Jinshi data, Citigroup analysts said in a report that the resolution of the Russia-Ukraine conflict may drop energy prices, thereby dropping the production cost of cheap metals. The United States and Russia have agreed to appoint negotiating teams to reach a solution. If the conflict ends and natural gas supplies through Ukraine are restored, energy prices (especially in Europe) may fall. This should reduce the production cost of energy-intensive metals, especially aluminum. However, the restart of aluminum smelters may be gradual due to weak demand that may limit the recovery.