Base Metals Prices

Base metal prices increased 1.2% month on month in March, following February’s 0.6% fall.

In March, average base metal prices rebounded from February levels, driven by stronger price gains in aluminium, iron ore and the steel complex. Aluminium traded above prior-month levels amid disruptions to production and shipments in the Gulf region—which produces around 9% of global supply—due to the U.S.-Iran war. Similarly, iron ore and steel prices rose on the back of higher shipping and input costs. In particular, EU electric furnace steelmaking is vulnerable to higher electricity costs. Copper was the worst performer in March, while nickel, zinc, tin and lead also suffered from the conflict in the Middle East and the resulting surge in energy prices, which darkened the outlook for global industrial production. A stronger USD also weighed on prices.