Stay up to date with the latest update in the Metal Market, as base metal prices continue to fluctuate following oil. As oil continues to fall so does the base metals prices. In mid-January Iraq announced record high oil production due to an oversupplied market, causing oil prices to fall 4 percent. Copper followed oil prices down with a .6 percent loss.
Metal prices have come off a tough year in 2015, with aluminum, copper, nickel and platinum all falling. The problem the market faced is the high supply and slowdown in demand.
The Chines devaluation of the Yuan also had effects on the metal market, with the currency change bringing down the demand. But metal prices may turn around after their long downturn as China’s raw materials dependent sectors begin to show some modest improvement.
The industrial metal prices are most likely to remain depressed until the supply slows down by production cuts. Oversupply of Iron, Copper, and Aluminum are all causing the prices to remain under pressure. But there could be some light at the end of the tunnel. Aluminum demand is said to raise due to the automotive, packaging, and airline industry growth. Cooper has hopes to be in position to make profits when the markets eventually recover.
In fact, as recently as Wednesday, January 27th copper prices hit a 2 ½ week high as oil prices jumped. This has tempted investors to buy back short positions. Copper still seems to be tied up with oil. We will continue watch the oil sector as 2016 continues.