PRESS ROOM
Industrial metals remain under the weight of cyclical pressures despite a modest recovery last month
Friday 04th November '22
The macro backdrop for industrial metals remains challenging for now. Cyclical commodities, including industrial metals, are fixated on the prospect of a recession hurting demand in the coming months. This continues to weigh on prices despite the tightness in the physical market. Economic activity in China also remains lukewarm offering little support to industrial metals currently. China’s Manufacturing Purchasing Managers’ Index (PMI) remained in contractionary territory in October, i.e., below 50, which now marks three consecutive months of contraction. In contrast, the prospect of a London Metal Exchange (LME) ban on Russian metals looms. If this materialises, sentiment may turn quickly as markets may move to price in material tightness in metals markets.