The prices of base metals are currently being traded to mixed results at the London Metal Exchange. These metals are aluminium alloy, aluminium, copper, lead, nickel, tin, zinc, and NASAAC (North American Special Aluminum Alloy Contract).
Here are some historical data spanning one month from 24 October to Tuesday closing at 26 November 2014:
- DOWN ↓: Aluminium alloy started at $2,085 per tonne at a volume of 26,960 tonnes. It closed at $2,045 per tonne at a volume of 26,760 tonnes.
- UP ↑: Aluminium started at $1,964 per tonne at a volume of 4,462,075 tonnes. It closed at $2,058.50 per tonne at a volume of 4,354,025 tonnes.
- DOWN ↓: Copper started at $6,695 per tonne at a volume of 159,550 tonnes. It closed at $6,653 per tonne at a volume of 163,200 tonnes.
- UP ↑: Lead started at $2,017.50 per tonne at a volume of 224,675 tonnes. It closed at $2,065.50 per tonne at a volume of 217,925 tonnes.
- UP ↑: Nickel started at $15,050 per tonne at a volume of 378,132 tonnes. It closed at $16,530 per tonne at a volume of 398,064 tonnes.
- UP ↑: Tin started at $19,400 per tonne at a volume of 9,105 tonnes. It closed at $20,270 per tonne at a volume of 11,865 tonnes.
- UP ↑: Zinc started at $2,258 per tonne at a volume of 712,725 tonnes. It closed at $2,293 per tonne at a volume of 669,875 tonnes.
- DOWN ↓: NASAAC started at $2,160 per tonne at a volume of 73,920 tonnes. It closed at $2,119 per tonne at a volume of 77,460 tonnes.
The prices are for the three-month buyer contract. Most of the base metal stocks have been resilient and bounced back, except for aluminium alloy, copper and NASAAC.
A Look at Copper and Nickel Moving Forward
Per this report from Bloomberg, the Goldman Sachs Group Inc (NYSE:GS)expects the price of copper to slip in 2015 the more the US dollar gains its foothold and value in the growing economy. The price may fall to as low as $6,217 per tonne. Since there is no shortage of copper in the commodity market, trade prices will most likely be affected by the predicted low cost of production.
Another report from Reuters stated that base metals were affected when Japan, one of the biggest importers of commodity in Asia, announced that it is going into recession. Nickel, lead, and aluminium were able to rally and recover quickly after news about shortages came out. The projected scarcity of these metals will most likely affect prices. Says Nicholas Snowdon, metals analyst at Standard Chartered (LONDON:STAN) in London: "On a fundamental basis, we continue to think that metals with deficits will still be able to outperform.”
It is interesting how the base metals market will look like in the coming year. Aside from the developments with Japan, mining industries are still feeling the effects of the ore export ban by Indonesia, which was the main driver of the nickel deficit in the first place.
Amur Minerals Corporation is banking on being able to supply China and the rest of the world with the much needed nickel, as it has recently applied for an exploration license for the Kun-Manie project in Russia. Amur stocks closed at $6.94 per share as of 25 November 2014. The company has recently been included in the list of top market movers in the AIM market.