Base Metals Prices

Base metal prices fell 1.7% month on month in August, following July’s 0.2% increase.

In August, prices for seven out of the 12 base metals tracked by our analysts posted losses. Waning global demand was the key driver of the downturn, which affected heavyweights copper, aluminium and nickel, as well as steel and iron ore. Contractionary manufacturing PMI readings in August for the Eurozone, the U.S. and China pointed to subdued industrial activity. Crucially, after its reopening earlier this year, the Asian giant continued to disappoint despite recent interest rate cuts and promises of stimulus measures. A lack of policy execution or even concreteness was likely an additional headwind for China’s recovery. On the flip side, lead prices increased amid a resilient automobile sector, and alumina prices rose on weaker supply and higher demand from reopening aluminium mills in China.