In June 2024, copper price was down 4.6% m/m. The spring rally that saw copper prices surge over record-breaking US$ 11,000 per ton has relatively cooled. The growth was driven by the speculators betting billions of dollars on copper deficit. However, higher prices forced manufacturers to delay purchases, partly alleviating the potential shortage. Due to this, copper inventories in China grew to highest level in early June since 2020. As the prices slowly declined, some consumers returned on the market, translating into falling inventory in China by the month-end. Despite the recent price dynamic, long-term forecast of the red metal remains bullish amid potential supply-demand mismatch.
In June 2024, European ferrosilicon price was down 3.2% m/m, while its Chinese counterpart lost 3.7% m/m. Meanwhile, silico-manganese gained 18.9% m/m. Sudden jump is attributed to surge in manganese prices, following the world’s second-largest mine’s closure in Australia due to severe storm. Although both metals are used in steel production, momentum of silico-manganese is likely to have only a limited effect on ferrosilicon price due to their different characteristics. On the demand side – Chinese steel production (and its demand) remains muted, creating downward pressure on prices.
