Against the background of new sanctions prohibiting the supply of metals from Russia to the London Metal Exchange (LME) and the Chicago Mercantile Exchange (CME), growth in business activity and increased speculation, all base metals' prices rose in April. Price growth was started by most metals back in March and accelerated in April.
The price of 3-month LME tin futures rose for 3 consecutive months, reaching $31,710/MT in April, up 15% month-on-month (m-o-m). Apart from general investor optimism in the base alloys segment, weak supply from Indonesia was an important growth driver. Aluminium prices rose by 11% m-o-m to $2,526/MT, primarily on the back of sanctions against Russia. The price of zinc rose by 10% m-o-m to $2,163/MT, accelerating the growth that began in March. Market players cite a balanced zinc market as a key factor. Copper prices rose 9% m-o-m to $9,596/MT, and many investors still see copper as having upside price potential in the short term. Nickel and lead prices rose 4% m-o-m to $18,375/MT and $2,163/MT, respectively. Fundamentally weak demand prospects for both metals slowed price growth in April.
Source: Mintec Analytics
However, consumers do not see any fundamental prospects for continued growth in base metal prices. Demand is growing slowly and accumulated metal stocks are able to supply the market and in case of a surge in demand or a reduction in supply. Some base metals have already started to fall in price at the end of April as investor optimism is also declining.
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