As 2015 continues to move forward things are not looking better for the Metal Market outlook. Copper prices have hit their lowest in more than six years sliding as low as $4,700 a tonne, the lowest since June 2009. Metal used in power and construction was down 2.5% as well.
Slow demand in China has been a large factor in coppers losses of 2015. Also worry comes from Chile’s Codelco, a top world copper producer, which has cut its 2016 premium to China for refined metals by more than a quarter. Lower prices have pushed some large mining companies including Freeport, McMoRan and Glencore to slow down production causing additional decrease in demand. Most base metals are now seeing an oversupply but the same cannot be said about the demand side. Aluminum market continues to look extremely weak which can be due to persistent over supply and high stocks. This can be expected to keep prices under pressure.
After attacks on Paris in the recent days investors are beginning to turn towards safer assets such as the dollar. A higher US currency makes commodities more expensive for non-US firms. Precious metals have seen a rise following the recent attacks on Paris. Gold rose on Monday as investors sought safety in metals. Spot gold rose 0.6 % and U.S gold rose 1% to a session high. Silver platinum and palladium all gained about 1% each as well. As gold is typically seen as a safe haven asset during times of uncertainty. Before Mondays turn around, gold had fallen for 12 out of 13 sessions. And was not looking to recover anytime soon, gold was looking at its worst losing streak in almost 20 years.