3.1
2.9
BASE METALS | Price Recovery
2.7
2.5
2.3
2.1
3.1
1.9
2.9
Copper Prices ($/Pound)
50000
Nickel Futures (LME $/Tonne)
45000
Monthly Highs Since Jan 2007
40000
1.7
2.7
35000
30000
2.5
Sources: Investing.com
25000
2.3
20000
15000
2.1
10000
1.9
Sources: Investing.com; International Copper Study Group; London Metal Exchange; Commodities Market Outlook, World Bank; Goldman Sachs Group March Release
T
he falling price trend in base metals
which dominated most of 2015
crept into sentiment for the early
part of this year. Concerns around the
global economy, dominated by the
negative sentiment surrounding the
Chinese economy in particular, led to a
direct fallout in demand and prospects
for industrial metals. While prices have
recovered since then, it would be
imprudent to opine that the cycle has
turned. While February saw a broad-based
rally across the commodities market,
March has seen some level of cynicism
creep into sentiment prevailing around
the bounce back buoyancy. The year
remains heavily laden with economic
events and related data is expected to
continue to dictate the sentiment around
the base metal markets.
Copper Recovers
Copper prices reversed the downwards
trend which continued during the
beginning of the current year and have
seen some price stabilization come in. The
fallout of the near 25% price correction
during 2015 has been witnessed in a
number of producers cut production or
completely suspend output. Results for
Antofagasta PLC, amongst the top 10
producers of copper miners worldwide,
which reported a pre-tax profit of $259
mn over 2015 from $1.5 bn, a year ago are
a stark reflection of the year gone by and
the hit the industry has taken.
As per the recently released outlook
by the International Copper Study Group
(ICSG), the global refined copper market is
expected to remain ‘essentially balanced’
in 2016 compared with a previous forecast
in October for a 175,000 tonne surplus.
April 2016 | www.wealth-monitor.com
Feb-16
Mar-16
Jan-16
Dec-15
Oct-15
Nov-15
Sep-15
Aug-15
Jul-15
Jun-15
Apr-15
May-15
Mar-15
Jan-15
Feb-15
5000
1.7
0
Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May Sep Jan May