Base Metals Prices

Base metal prices increased 3.4% month on month in May, following April’s 3.9% rise.

In May, average base metal prices rose for the third consecutive month, ranking as the second-best performers among commodity groups. Three-quarters of base metals traded higher than in April, though the drivers varied: Copper climbed on robust Chinese demand and supply concerns stemming from Peru’s energy crisis; nickel and zinc were buoyed by low inventories and production disruptions at key smelting facilities; aluminium drew support from the Iran conflict, which damaged regional smelters and disrupted shipments through the Strait of Hormuz. In contrast, alumina prices slipped amid rising output and weaker demand, while European steel prices were likely weighed down by expectations of slowing demand.