Metals Posted Lackluster Trading Year in 2023

SEATTLE (Scrap Monster): The previous year reported lackluster trading in metals. Among metals, nickel emerged as the worst performer, recording maximum losses. The metal is unlikely to witness recovery any time soon, as per analysts. Meantime, copper managed to end 2023 with minor gains.

Nickel recorded a decline by 45% on the London Metal Exchange (LME), posting the biggest decline since 2008. This is the worst decline posted so far by any industrial metal. The fall in nickel prices were in contrary to marginal gain of 2.2% by copper during the year. Meantime, the Singapore iron ore prices surged higher by almost 20% in 2023. 

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The metals trading remained under pressure, mainly due to headwinds in global economies and uncertainties over China’s growth outlook. The all-in gauge of six metals on the LME recorded 5.6% annual decline in 2023.

As in the case of nickel, the market continued to be flooded with new material from top producer Indonesia. At the same time, demand growth continued to remain muted during the year. Although nickel supply continues to grow, the consumption is not yet showing any signs of improvement, said market analysts. The net short positions on nickel among the top brokers on SHFE are currently at the peak levels in at least months.

The copper prices are predicted to hit $10,000 per metric ton over the next one-year period, said Goldman Sachs in a recent report.