Base Metals Prices

Base metal prices increased 2.0% month on month in June, following May’s 2.3% rise.

Prices for most base metals tracked by our panel gained ground in June as global manufacturing activity strengthened. Moreover, the ceasefire between Iran and Israel, plus a trade deal between the U.S. and China on rare earth exports and tech restrictions, added impetus to the price rally in late June. U.S. tariffs on metals also played a role in the price rises. Threats of copper tariffs boosted LME prices as traders drained inventories to frontload shipments to the U.S. Meanwhile, the hike on aluminium tariffs pushed the U.S. premium for the metal to a record high. Lastly, higher tariffs on steel failed to boost domestic prices and also dented European prices since steel flows were redirected. Iron ore saw prices decline as well on a downbeat Chinese property sector, while nickel prices fell due to oversupply.