Analysis of LME Non-Ferrous Metal Price Fluctuations (January 27-31, 2025)

From January 27 to 31, 2025, LME base metal prices showed an overall downward trend. Copper declined by approximately 1.1% due to concerns over China's real estate market slowdown and the impact of U.S. protectionist policies on global trade. In particular, reduced demand in China’s construction and electronics industries was a major factor.

Aluminum dropped by about 0.7% as energy price stabilization eased production cost burdens. Since aluminum production is highly energy-intensive, lower energy costs led to more stable supply, putting downward pressure on prices.

Zinc fell by around 2.9% as slowing global economic growth reduced demand, while expectations of supply recovery from major producers added to the downward pressure. Manufacturing activity in China and Europe weakened, contributing to lower demand, while an anticipated increase in supply from some producing countries further drove prices down.

In contrast, lead rose by about 0.4% due to increased demand for automotive batteries and supply disruptions in certain regions. The seasonal rise in battery replacement demand during winter played a role, along with limited supply caused by production issues.

Nickel saw a decline of roughly 3.0% due to oversupply concerns and weaker demand for stainless steel. Increased production from Indonesia and the Philippines led to an oversupply, while a slowdown in stainless steel production reduced demand, causing prices to drop.

Tin fell by about 0.4% due to weakening demand in the electronics sector and stable production levels. A slowdown in the semiconductor industry and declining demand for certain electronic products negatively impacted tin consumption, while stable supply from major producing countries contributed to the slight price decrease.

Overall, the main factors influencing base metal price fluctuations from January 27 to 31 were slowing global economic growth, increasing supply, and declining demand in key industries.