From their speculative peak in May, base metal prices fell sharply until early August, with the LME index falling by 18.7% peak-to-trough, with Nickel and Copper recording the largest falls, NAB commodity strategists note.
Volatile metals search for direction post correction
“Prices rallied from this relative low – limbing almost 10% by late August, led by Aluminium and Zinc, before the index eased somewhat once again.”
“The Copper-led surge in base metals between early April and mid-May came despite a growing surplus in Copper markets. Data from the International Copper Study Group shows that refined supply exceeded consumption by around 488 kt in the first half of 2024 (compared with around 115 kt for the same period in 2023).”
“Following the steep corrections in metals prices, we have revised our forecasts for base metals lower – albeit we note that the high degree of volatility in these markets means that there is sizeable risk around these forecasts to both the up and downside.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD defends 0.6900 amid Mideast concerns
AUD/USD holds a renewed uptick above 0.6900 in the Asian session on Wednesday. Fears of a wider war in the Middle East, following the overnight Iranian bombings on Israel, check the bounce in the higher-yielding Aussie. US jobs data and Fedsepak are next in focus.
USD/JPY jumps above 144.00 on BoJ's rate hike uncertainty
USD/JPY is extending recovery gains above 144.00 in Wednesday's Asian trades, as the Japanese Yen gives into the uncertainty surrounding the BoJ's potential rate hikes. Risk reset also seems to aid the pair's rebound, as markets push aside Mideast concerns. The focus stays on US ADP data and Fedspeak.
Gold price remains close to record peak amid fears of wider Mideast war
Gold price edges lower and erodes a part of the previous day's gains, though the downside seems limited on the back of rising geopolitical tensions in the Middle East. Furthermore, hopes that China's stimulus measures will revive physical demand could underpin the XAU/USD.
Are we in for a Bitcoin and crypto market Uptober? Let's observe the key factors
Bitcoin and the crypto market may rally in the coming days as “Uptober” is trending across several crypto community platforms on Tuesday. However, a few key market factors could alter or strengthen the bullish bias among investors.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.