Metal Price News - September
Metal prices have been fairly steady for the past month. The same cannot be said about the oil market: The oil price is reaching new highs, and this could cause problems for the general economy.
Macroeconomic developments
Talks of a peace agreement between the United States and Iran have completely stopped. It almost seems as if the two countries are trying to avoid talking about each other and the conflict.
But the war continues despite the silence, and so does the blockage of the Strait of Hormuz. This means that oil prices are still rising, which is causing rising inflation worldwide. The European Central Bank responded last week by raising interest rates by 0.25% to curb inflation, and the US Federal Reserve is expected to do the same later today (Wednesday).
Oil
A drone attack on a Saudi Arabian pipeline has sent the price of oil up to $108/barrel. Now that the wars in both the Middle East and Russia/Ukraine seem to be the new normal, the scarcity of oil and natural gas is starting to show. There is a risk that energy prices may continue to rise as the conflicts carry on.
Aluminium
Aluminium remains at the relatively stable price level that we saw in August. The price has only moved within a range of $200/€180 in the past month.
Copper
Last month, copper reached a record high: That has happened again. For a time it looked like the sharp price increase would be a repeat of last month's price shock and short squeeze, but then the price moved downwards again. Right now, it has found a stable level around $14,100/€12,200.
The price drop is partly due to doubts about whether Donald Trump will follow through on his copper tariffs. If the tariffs are never introduced, the American exchange COMEX will have accumulated very large copper stocks for no reason. This once again shows that Donald Trump’s politics have a very large influence on the markets.
Stainless steel
New changes in the CBAM tax mean that over the next three years, an extra 30% CO2 tax will be added to imports from countries outside the EU. In the best case scenario, these new changes can foster stability in the stainless steel market, which has been characterized by large fluctuations every time quarterly imports from Asia have come in.
Plates/sheets
The prices reflect the fact that European stocks are high. We are also seeing that some plants have very delayed deliveries that are still being sold at the original price, which is lower than the current market price.
Bars
The price is relatively stable, and lead times are good. The alloy surcharge has fallen slightly in recent months, but this has not been reflected in the total price. On the acid-resistant grades, the alloy surcharge has increased slightly, but that has also not affected the total price.
Tubes and fittings
Activity is picking up across Europe, which is reflected in the prices of tubes and fittings for industrial use.
