Base Metals Prices

Base metal prices decreased 0.6% month on month in February, following January’s 8.0% rise.

After rising at the fastest pace in almost four years in January, average base metal prices declined slightly in February. A stronger U.S. dollar weighed on prices at the start of the month, while lower demand tied to the start of the Lunar New Year holidays weighed on prices for copper, nickel and tin. Iron ore was the worst performer amid high port inventories and ample supply. Regarding aluminium, rumors about President Trump’s plans to roll back some tariffs on the metal weighed on the commodity. February’s best-performers were the small commodities: U.S. steel prices benefited from high import tariffs; cobalt prices were aided by still-constrained supply from the DRC; EU steel prices were supported by higher production costs due to the Cross-Border Carbon Adjustment Mechanism.