Base Metals Prices

Base metal prices increased 1.2% month on month in July, following June’s 2.0% rise.

Prices for the vast majority of metals tracked by our panel rose over the past month. The upturn was driven by U.S. trade deals with multiple large economies such as Japan and the EU, upbeat momentum in the semiconductor sector and hopes of improving Chinese demand amid growing expectations of stimulus policies in the country’s frail property sector. Nonetheless, the highlight of the month was the tumultuous dynamics in the copper market. U.S. plans to apply a 50% tariff in August sent the U.S. premium to over 30% and triggered sustained volatility in LME prices. That said, the premium sank to 4% and LME prices cooled when Trump announced that the levies would only apply to semi-finished products and not to refined copper—the metal’s most widely imported form.