Base Metals Prices

Base metal prices increased 3.0% month on month in September, following August’s 0.4% fall.

Average prices for almost all base metals rose in September compared to August. Copper prices led the charge, rising after two consecutive months of declines on the back of expectations, later confirmed, of Fed rate cuts, and the forced closure of Indonesia’s Grasberg mine—the world’s second-largest source of the metal. Similarly, aluminium, iron ore, lead, molybdenum, nickel, tin and zinc traded above August levels amid improved manufacturing conditions in China and prospects of stronger global economic growth following Fed rate cuts. Alumina and U.S. steel were the only two base metals whose price dropped. Alumina was weighed down by high port inventories of bauxite and stronger Chinese supply, while steel declined due to a weaker improvement in U.S. manufacturing conditions in September compared with August.