LME main commodity international prices (2024. 10. 21.~10.25.) 

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Let's take a look at the international non-ferrous metals prices from October 21 to 25, 2024.

Last week's LME metal prices fluctuated due to various factors.

- Global Economic Uncertainty

From late October, the drop in oil prices and uncertainty over the U.S. Federal Reserve's interest rate policy affected the overall metal market. Concerns about slowing economic growth, coupled with slower-than-expected recovery in Chinese consumption, raised concerns about declining demand.

- Copper Market

Copper prices fluctuated between $9,484.5 and $9,608 throughout the week. Although the price volatility was significant, it saw a slight increase toward the end of the week. This appears to be supported by supply chain instability and stock shortages.

- Lead Prices

LME lead prices started at $2,074 and fell to $2,028. The main factors for this decline were a slowdown in demand and a decrease in overseas stock. In particular, the decline in recycled lead production in China disrupted the balance between supply and demand.

- Nickel Market

Nickel, a key raw material for the battery industry, continued to show price volatility. Despite increasing demand for secondary batteries, concerns over potential export restrictions from major suppliers like Indonesia and the Philippines led to a sharp rise in nickel prices. Market instability grew as a supply shortage was anticipated, and some investors sold off to realize profits, leading to a temporary drop in prices.

- Aluminum Market

Aluminum weakened in late October, largely influenced by falling energy prices. Aluminum production is energy-intensive, so when energy costs drop, producers have more room to lower prices. However, tensions over potential export restrictions from Russia limited the price decline.

- Increase in Raw Material Stocks

An increase in raw material inventories stored in LME warehouses contributed to the price decline. When inventories rise, it signals that the market has sufficient supply, leading to lower prices. Copper and lead, in particular, saw significant inventory increases, which negatively impacted their prices.

- Interest Rate Policy and Dollar Strength

The U.S. Federal Reserve continued to signal the possibility of interest rate hikes, strengthening the dollar. Since metal prices are largely traded in dollars, a strong dollar imposes a burden on buyers using other currencies, thereby reducing demand. As a result, demand for metals declined toward the end of October, causing prices to fall.

In summary, the week of October 21 to 25 saw price volatility due to a combination of economic slowdowns and supply chain issues affecting specific metals.