LME main commodity international prices (2025.1.20.~1.24.)

 Analysis of LME Non-Ferrous Metal Price Fluctuations (January 20-24, 2025)

1. Global Economic Slowdown

The slower-than-expected global economic growth negatively impacted the demand for non-ferrous metals. In particular, China’s real estate market slump and the decline in industrial activity in the U.S. and Europe led to reduced demand for copper, nickel, and other metals. Since China is the world’s largest consumer of non-ferrous metals, the downturn in its real estate sector resulted in decreased metal demand in the construction and electronics industries. Additionally, weak manufacturing indicators in the U.S. and Europe further dampened industrial activity, negatively affecting metal demand.

2. Supply Chain Changes

Some metals experienced supply chain fluctuations. Zinc prices initially rose due to raw material shortages but later shifted to a downward trend as supply recovery was expected. This was attributed to the resumption of production in key producing countries and improvements in logistics. In contrast, lead prices declined due to rising inventories. This was a result of continued production amid weak demand, leading to inventory accumulation.

3. Policy and Trade Environment Changes

The strengthening of U.S. protectionist policies and the potential for tariff impositions reduced global trade volume, negatively impacting the demand for non-ferrous metals. In particular, trade tensions between the U.S. and China affected industrial production in both countries, leading to decreased metal consumption. Additionally, the European Union (EU) introduced stricter environmental regulations, increasing production costs for some metals and contributing to price volatility.

4.Energy Price Fluctuations

Energy price fluctuations directly affected the production costs of non-ferrous metals. The recent rise in energy prices led to higher production costs, acting as an upward price factor for some metals. This was particularly significant for aluminum, as its production is highly energy-dependent. The increase in energy costs significantly impacted aluminum production costs, contributing to price increases.

These factors collectively influenced the fluctuations in non-ferrous metal prices between January 20 and 24, 2025.