LME main commodity international prices (2024.12.02.~12.06.)

 LME Price Fluctuation Analysis: December 2–6, 2024

1. Expectations for China's Economic Recovery

As the world’s largest consumer of metals, China’s economic prospects significantly influence metal prices. During this week, heightened expectations for additional economic stimulus measures from the Chinese government boosted demand optimism. The anticipation of increased infrastructure investments and a rebound in manufacturing activity were key drivers for price hikes, particularly for copper​.

2. Impact of Dollar Weakness

The weakening of the U.S. dollar in early December played a pivotal role in lifting metal prices. Metals are traded in dollars, so a weaker dollar makes them more affordable to international buyers, stimulating demand. This trend positively influenced investor sentiment across major commodities​.

3. Supply Disruption Concerns

For nickel, concerns over supply disruptions in Indonesia, a major producer, led to heightened market apprehensions. Indonesia’s production and export challenges intensified fears of shortages, encouraging speculative buying. Nickel's crucial role in electric vehicle batteries and stainless steel production further bolstered its demand outlook, contributing to price increases​.

4. Technical Rebound

Following a downtrend through late November, metal prices experienced a technical rebound at the start of December. This shift attracted bargain hunters, with investor sentiment turning positive, reinforcing upward momentum in prices​.

5. Inventory Changes and Market Sentiment

Daily fluctuations in LME warehouse inventories significantly impact price movements. This week, slight decreases in copper and aluminum stockpiles amplified concerns over potential supply shortages, providing further upward pressure on prices.

This analysis highlights the key factors influencing price fluctuations during the first week of December. Continuous monitoring of market developments remains essential to understanding ongoing trends.