LME main commodity international prices (2024.12.09.~12.13.)

Between December 9 and 13, 2024, the prices of major metals on the London Metal Exchange (LME) exhibited a mixed trend. Below is an analysis based on data from the Korea Nonferrous Metal Association, focusing on the factors influencing the price fluctuations of key metals like copper, aluminum, and nickel.

1. Copper

Copper prices were significantly affected by China's economic indicators and the global supply situation.

- Factors for Price Increases:

Positive industrial production figures from China boosted market sentiment and heightened demand expectations.

Concerns over potential supply disruptions in major producing countries impacted prices.

- Factors for Price Declines:

A tightening financial atmosphere globally continued to dampen investor sentiment.

A strong US dollar exerted pressure on the overall commodity market.

2. Aluminum

The aluminum market demonstrated stability, driven by growing demand in specific industries and improvements in supply chain conditions.

- Factors for Price Increases:

Stabilized energy costs in Europe improved conditions for aluminum production.

Consistent demand from the aerospace and automotive industries provided positive momentum.

- Stable Market Trends:

Geopolitical tensions remained unresolved, leaving some supply chain uncertainties intact.

3. Nickel

Nickel garnered attention due to its critical role in battery production, although a slowdown in stainless steel production in China limited price growth to some extent.

- Factors for Price Increases:

Continued export restrictions from Indonesia heightened concerns about a supply shortage.

Growth projections for the electric vehicle and energy storage industries provided long-term support for nickel prices.

- Factors Limiting Price Growth:

A slowdown in demand from key industries in China curtailed short-term upward movement.

4. Overall Market Factors

The metal market this week was influenced by the following global variables:

- Economic Indicators and Monetary Policy: Tight monetary policies in major economies placed pressure on the overall metal market.

- China’s Economic Stimulus: The lack of additional stimulus measures from the Chinese government slightly weakened market expectations.

- Seasonal Factors: Reduced year-end trading volumes heightened price volatility.

5. Conclusion

During the second week of December 2024, the metal market displayed a mixed trend, reacting sensitively to global economic conditions and geopolitical factors. Notably, China’s economic indicators and the monetary policies of major economies played a crucial role in shaping market sentiment. Future price trends will likely hinge on the announcement of additional stimulus measures in China and changes in monetary policies in key market.