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Metallprisnyheter vecka 51

News that have affected the metal prices

Today’s commodity prices

3 months LME USD 2.840/ EUR 2.500

Cash CLME USD 9.660 / EUR 8.520

 

After a period with falling commodity prices, the prices have gone up again. As usual it has been a volatile period. Copper has been trading in the range of USD 9,160 – 9,620, while aluminium has been trading in USD 2,590 – 2,850. Today’s commodity price is the highest in the period.

The 2 main focus points for now are the Omicron variant of COVID-19 and Ukraine. COVID-19, and especially the Omicron variant, is spreading quickly. Europe and the USA are registering a high number of cases, new lockdowns have been initiated and people have started to work from home again. In mid-December when COVID-19 was in focus, the financial markets started to drop, traders closed their books for the financial year to reduce their risk and the marked feared that lockdowns would affect the economic growth negatively. This led to falling commodity prices.

For some time now, Ukraine has been a topic of discussion between Russia, the EU and the USA. Russia is making demands regarding Ukraine’s membership of NATO, while the EU and the USA are dismissing the Russian demands. The EU and the USA are threatening Russia with sanctions, while Russia has placed military at the Ukrainian border and reduced the supply of natural gas to Europe. This reduction and the forecast for colder weather in Europe have impacted the electricity prices, causing an increase of more than 20%. The increasing electricity prices have led European metal shelters to reduce their production due to increasing production costs. This has led to increasing commodity prices.

For now, the focus on inflation in both the US and Europe, a possible deficit of zinc, which could lead to higher zinc prices in Q1 of 2022, and focus on the Chinese real estate sector has been pushed in the background. But they are trigger points that might come into focus in the future.

 

Factors that make the price higher

News regarding the coronavirus.

Price increase.

Tax on aluminum and copper.

Economic data out of China, the USA and Europe.

 

Factors that make the price lower

News regarding the coronavirus.

Inflation

Low economic growth from China, the USA and Europe.

 

Prices from December 23rd, 2021.

DISCLAIMER