Fitch Ratings has increased its ammonia price assumption for 2023, taking into account elevated YTD prices. The 2024-2025 assumptions consider higher gas prices, growing demand, particularly in 2024, and a dearth of capacity additions in 2025.
According to Fitch Ratings, the report highlights the resilience of global growth in 2023, driven by the normalization of consumption in China and a resurgence in US growth.
Fitch Ratings has revised its near-term oil and European gas price assumptions, citing OPEC+'s sustained control over supply and ongoing dynamics in the energy market.
India's expanding consumer market and vast labour force can make it an alternative destination to China as part of countries' supply chain diversification, according to Fitch.
Governments in the region are expected to intensify efforts in transitioning to clean energy, leveraging policy initiatives, sectoral reforms, innovative technologies, cost-effectiveness, and green financing, despite challenges posed by stretched fiscal positions.
Fiscal risks, especially on the spending side, take centre stage as a potential disruptor to this equilibrium. Fitch emphasizes that fiscal policy's role has been expanding steadily for over a decade, a trend set to continue in 2024.
The neutral outlook is driven by resilient business models, an increasing share of recurring non-volume revenue, and the overall adaptability of FMIs to market fluctuations.
The report sheds light on the positive financial indicators of copper producers, emphasizing the surging demand fueled by the metal's pivotal role in the ongoing global energy transition.