Uncertain macroeconomic landscape keeps base metals prices low
PublicationNatural resources
A diverse picture has emerged in base metals markets. The prices of aluminium, copper and zinc are now relatively low, while the price of nickel has risen to new heights. Clearly, the uncertain macroeconomic climate is having a depressing effect on the price trend of all base metals, mainly due to the imminent trade war. Government policy is key in the nickel market. Indeed, an Indonesian export ban on nickel ores from 1 January is ensuring higher prices.
Aluminium: high availability puts pressure on prices. Copper: strong dollar and macro uncertainty results in low copper price. Nickel: Indonesian export ban sends nickel price to new highs. Zinc: demand for zinc is weak, which is creating a low price environment.