HSBC’s commodities team says markets have moved into a “super bull market,” driven by years of underinvestment in supply, rising post‑pandemic demand, and structural needs from the energy transition (notably copper, nickel and lithium). Geopolitical tensions and trade restrictions have tightened availability further, pushing prices higher for metals, energy and some agricultural goods.
The bank warns the rally won’t be smooth: economic slowdowns, policy shifts, or faster technological changes could cause volatility or pullbacks. It also notes higher prices should eventually encourage new supply, which would moderate the cycle over time.
For investors, HSBC recommends increasing exposure to transition‑critical commodities while managing higher short‑term volatility through diversified strategies across physicals, futures and equities. For policymakers and companies, the outlook underscores the need for supply‑chain diversification, strategic reserves and targeted investment to secure critical materials.
HSBC says commodities have entered a ‘super bull market’
