Base Metals Prices

Base metal prices increased 5.9% month on month in October, following September’s 3.0% rise.

Average prices for almost all base metals rose in October compared to September. Demand optimism was seemingly a key driver, as it became increasingly likely that the U.S. and China would reach an agreement to avoid further tit-for-tat tariffs; the two sides eventually agreed to a year-long trade truce. Recent Fed interest rate cuts and the prospect of more to come likely further boosted the demand outlook. Tight supply in several markets was also a key factor supporting prices. Cobalt was the most vivid example of this: Prices rose 29% month on month due to restrictions on exports from the DRC—the world’s chief producer of the metal. Meanwhile, iron and nickel prices dipped marginally, while alumina was the only metal to see a sizable price decline.