LME main commodity international prices (2025.2.17.~2.21.)

During the period from February 17 to 21, 2025, the prices of non-ferrous metals on the London Metal Exchange (LME) fluctuated due to various factors.

1. Global Economic Indicators and Demand Outlook

China's January industrial production data was weaker than expected, raising concerns about a slowdown in demand from the world's largest metal consumer. This was a major factor contributing to the decline in non-ferrous metal prices. Additionally, the possibility of an interest rate hike by the U.S. Federal Reserve dampened investor sentiment, negatively impacting the metal market.

2. Supply-Side Issues

Labor strikes and political instability in major producing countries like Chile and Peru heightened concerns over supply disruptions in copper and zinc. These supply uncertainties helped support the prices of certain metals.

3. U.S. Dollar Value Fluctuations

The strength of the U.S. dollar put downward pressure on non-ferrous metal prices. Since commodities are traded in dollars, a stronger dollar tends to reduce purchasing power in non-dollar regions, leading to weaker demand.

4. Changes in Inventory Levels

The increasing inventory levels of some non-ferrous metals on the LME raised concerns about oversupply. In particular, rising stockpiles of aluminum and nickel contributed to downward price pressures.

5. Geopolitical Risks

Heightened tensions between Russia and Ukraine raised concerns about supply disruptions for metals like nickel and aluminum, where Russia holds a significant share of global production. This added to market volatility.

Overall, the fluctuations in LME non-ferrous metal prices from February 17 to 21, 2025, were influenced by a combination of weakening demand outlook, supply uncertainties, dollar value fluctuations, inventory level changes, and geopolitical risks. Investors need to consider these factors comprehensively when analyzing market trends and developing response strategies.