Metal prices rebound after lengthy slide

The 5-6 month decline in base metal prices ended in August, however, following a rebound in prices that month, economist Patricia Mohr reports.

“The pickup reflects temporary supply disruptions and growing optimism the U.S. economy is headed for a soft landing rather than a recession,” Mohr writes. “LME inventories of copper, nickel and aluminum have moved lower, after rising earlier this year.”

In late August, Mohr reports, the copper price rose to $1.41(US) per lb from an average of $1.14 in July. Mohr says orders have picked up at wire and brass mills in the United States and remain strong in Japan, western Europe and the Far East. Also, world supplies have been affected by labor and other problems.

The all-commodity index tracks export prices of a variety of Canadian commodities, which are weighted according to their 1984 export values, except crude oil where the value of net exports is used.

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