Theme Overview
The post-Ukraine global security environment has triggered the largest sustained defense spending increase since the Cold War. NATO nations are targeting 2-3% of GDP on defense, representing hundreds of billions in additional annual spending. This translates directly into commodity demand: steel for ships, vehicles, and ammunition; titanium for aircraft; copper for electronics and wiring; aluminum for armor and aerospace; tungsten for armor-piercing munitions; and rare earths for guided weapons systems. Ammunition production alone is ramping dramatically -- the US Army's goal to produce 100,000 155mm shells per month requires massive quantities of steel, brass (copper + zinc), and explosives derived from petrochemical feedstocks. This defense spending cycle is expected to persist for at least a decade.