Metals Update

Towards the end of last week, the base metal price complex decreased across the board due to varying factors. Firstly, the market reacting to the increased likelihood of rate cuts being implemented next year. Secondly, there is a general feel that a sustained demand recovery is looking less likely for 2024. This is indicated not only in the LME metals but also for CME premium markets.

The physical market is also reflective of this narrative and feedback has been that no trades of note have been concluded as we approach the end of 2023. Consumer demand is therefore weak across various markets – especially Aluminium.

Copper is potentially the only metal bucking this trend at the moment, with various factors emerging that show potential supply issues for next year. Copper Treatment charges are continuing to fall which is a key indicator of raw material availability and the news of the Cobre Panama mine closing due to widespread political unrest only adds more fuel to the fire.

Thank you to Mike Day, Senior Director, Derivatives, SSY for this market update.