LME main commodity international prices (2025.3.3.~3.7.)

Analysis of LME Price Fluctuations from March 3 to 7, 2025

During the period from March 3 to 7, 2025, the price fluctuations of non-ferrous metals on the London Metal Exchange (LME) were influenced by multiple factors. To understand these changes, it is necessary to consider the global economic situation, production and export trends of major metal-producing countries, and shifts in supply and demand.

1. Global Economic Situation and Trade Policies

During this period, trade tensions between the United States and China persisted, directly impacting the non-ferrous metal market. The U.S. imposed additional tariffs on Chinese products, and in response, China strengthened export restrictions on five key metals, including tungsten. These trade disputes and tariff uncertainties increased market volatility.

2. Production and Export Trends of Major Metal-Producing Countries

Chile's copper production in December 2024 increased by 14% compared to the previous year, helping to alleviate supply shortages. However, this rise in production raised concerns about oversupply in the market, exerting downward pressure on copper prices.

3. Changes in Supply and Demand

As the Chinese New Year approached, the domestic market in China entered a consumption off-season, leading to weaker downstream demand. As a result, inventories accumulated in the domestic market, contributing to price declines.

4. Exchange Rate Fluctuations and a Stronger U.S. Dollar

The U.S. labor market showed a stronger-than-expected recovery, pushing the U.S. dollar exchange rate to its highest level in two years. A stronger dollar made U.S. dollar-denominated metals more expensive for buyers holding other currencies, creating significant pressure on the industrial metals market.

5. Other Factors

The European Union imposed a ban on Russian aluminum imports, impacting the aluminum market and increasing price volatility. Additionally, the Indonesian government expanded nickel ore exports, leading to an increase in supply and exerting downward pressure on nickel prices.

These factors combined to influence LME non-ferrous metal prices from March 3 to 7, 2025. Uncertainties in the global economy, production and export trends in major producing countries, supply and demand shifts, and exchange rate fluctuations all played crucial roles in determining price movements.