Since their speculative peak in May, base metal prices have fallen sharply through early August, with the LME index down 18.7% from peak to trough, with Nickel and Copper recording the biggest declines, NAB commodity strategists note.
Volatile metals seek direction after correction
“Prices recovered from this relative low, rising almost 10% by the end of August, led by aluminium and zinc, before the index eased back somewhat.”
“The copper-led rise in base metals between early April and mid-May occurred despite a growing surplus in copper markets. Data from the International Copper Study Group show that refined supply exceeded consumption by around 488 kt in the first half of 2024 (compared with around 115 kt for the same period in 2023).”
“Following the sharp corrections in metal prices, we have revised our base metals forecasts downwards, although we note that the high degree of volatility in these markets means there is considerable risk around these forecasts both to the upside and downside.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
