Base metal prices fall on demand concerns and rising supply – Commerzbank

Base metal prices fell significantly across the board last week and are now all trading at multi-month lows, notes Carsten Fritsch, commodity strategist at Commerzbank.

Base metals fall

“The London Metal Exchange (LMEX) index, which weights the six non-ferrous metals traded on the LME based on production and trading volumes over the past five years, fell 5.6% week on week and slipped below the 4,000-point mark for the first time since early April.”

“Copper posted its biggest weekly drop in almost two years at 5.7% and ended the week at around $9,300 per tonne, its lowest level in 3½ months. The price slide continued yesterday. At the beginning of the month, the copper price was still close to the $10,000 per tonne mark.”

“Aluminium fared no better with a weekly drop of more than 5%. As a result, the aluminium price fell to its lowest level since late March, at just over $2,300 per tonne, thereby giving up all its gains since the beginning of the year.”

Source: Fx Street

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