Deripaska: commodity spurt ended, it is necessary to prepare for long period of low prices

DAVOS, 22 January. The businessman Oleg Deripaska believes that commodity spurt in the global market is over and urged to prepare for a prolonged period of current prices for raw materials. He said this to journalists on the sidelines of the Davos forum.

“We have a serious opportunity to understand what will happen in the near future, and it seems that won’t be any miracles. Raw snatch in this cycle is over, and not even because of decreased demand. The demand for aluminum, for example, is growing – last year was 5.7 percent, this year will be more. We need to be prepared to very long level of current commodity prices, which will not be much different from oil,” he said.

While Deripaska stressed that oil prices have not finished declining.

“If in aluminum we have more or less balance, then oil, we see a tremendous amount of overproduction, and no one is going to shorten it or to introduce any quotas. In the future everything will depend on what monetary impacts will be. But because of this recession early in the year problems of the economy are likely to try to solve the old-fashioned way, pouring all the money”, – said Deripaska.