Hello, this is Steeltopia!

Let’s take a look at the LME price trends from last week, September 9 to 13, 2024.

Additionally, we will analyze the factors that influenced the fluctuations in key metal prices.

Analysis of LME Price Fluctuations

1. Concerns about China's Economic Recovery

China accounts for a significant portion of global metal demand, and concerns about the country's economic recovery became prominent during this period. Early in September, economic indicators released by the Chinese government fell short of expectations, increasing uncertainty about global metal demand. As a result, prices of key industrial metals such as copper and aluminum tended to decline.

2. Strengthening of the US Dollar

During the same period, the possibility of a US interest rate hike and the country's economic resilience led to a stronger dollar. Since metal prices are mainly traded in US dollars, a strong dollar weakens the purchasing power of non-dollar countries, exerting downward pressure on metal prices.

3. Raw Material Supply Issues

Disruptions in the supply chain of certain metals caused price fluctuations. In particular, labor strikes and production delays in some regions of Africa and South America affected metal supplies, leading to price volatility, especially for metals like nickel.

4. Manufacturing Slowdown in the US and Europe

Signs of a slowdown in manufacturing in the US and Europe also impacted metal demand. The PMI (Purchasing Managers’ Index) came in lower than expected, reflecting concerns that manufacturing activity might contract, contributing to falling metal prices.

5. Increase in Inventory

Rising metal inventories in the LME also acted as a factor driving prices down. For example, aluminum saw a significant inventory increase, raising concerns about an oversupply, which is believed to have contributed to weaker prices.