Corona crisis keeps base metals prices low

The pressure on base metals prices is high. The strong macroeconomic downturn due to the corona crisis is having a strong downward effect on the trend in aluminium, copper, nickel and zinc prices. However, it has not yet led to the extremely low price levels reached during the financial crisis of 2008-2009 and the stock market shock in China in early 2016. Still, while government policies and monetary stimulus proved to be effective remedies to restore sentiment after these crises, we have not yet seen this during the current crisis. The economic stimulus packages rolled out in various countries are still insufficient to boost sentiment. Concerns about the ultimate impact of the corona crisis are still too high, and this will keep prices of base metals relatively low for the time being. Aluminium: large aluminium end-users close production sites.Copper: copper price has already fallen 23% this year due to the corona crisis.Nickel: pressure on nickel demand due to production delays in stainless steel.Zinc: higher zinc production with weaker demand.