Metal prices have fallen from their April highs, but volatility persists

14 Jun 2022 , 09:58 AM

Since April, global base metals prices have decreased 9-17% from previous high levels, bringing some relief to Indian user industries, which had faced steep increases in input prices in line with the global trend. However, some metals, such as copper and aluminium, have recently become more volatile.

Despite the fact that a correction was expected following the spike triggered by global uncertainty, analysts predict that metal prices will remain up for the rest of the year, despite considerable volatility.

Aluminium prices on the LME fell 15% between April 11 and May 10, while copper prices fell 9% and zinc prices fell 17%. China’s domestic pricing of hot-rolled coil (HRC) steel has also dropped 15%.

However, prices have begun to recover since then. On the LME, zinc prices are up 3% and copper prices are up 2% as of June 10, however aluminium prices are still down. Domestic HRC prices in China had increased by 11% from a month ago.

Steel prices in India are determined by the landed cost of imports, but prices for other metals are largely determined by LME prices. Metal corporations’ pricing power may be put to the test.

According to the International Lead and Zinc Study Group, global demand for refined lead is expected to climb by 1.7% in 2022, to 12.42 million tonnes(mt), after rising by 4.1% in 2021. In the same way, global refined zinc consumption is predicted to increase by 1.6% to 14.26 mt in 2022. In 2021, it increased by 5.1%.