Metal Prices Under Scrutiny – What Truly Influences Market Fluctuations

Metal as a Strategic Commodity

Copper, aluminium, and steel are among the world's most important raw materials. Their prices determine the health of many industrial sectors—from construction to energy to automotive industries. It is no surprise that their quotations spark interest on stock exchanges and among entrepreneurs.

The Role of Commodity Exchanges

The most important place for trading non-ferrous metals is the London Metal Exchange (LME). It is here that global benchmark prices are set, which subsequently influence contracts in Europe, Asia, and the Americas.

Factors Influencing Prices

The fluctuations in metal prices are influenced by many variables—from geopolitical situations to energy costs and the development of new technologies.

The main factors include:

• Supply and Demand – the rising demand in energy and electromobility drives up the prices of copper and aluminium.

• Geopolitics – conflicts and trade sanctions restrict the availability of raw materials.

• Energy Costs – the production of aluminium or steel is highly energy-intensive.

• Recycling – a greater share of recycling stabilises the market but does not eliminate fluctuations.

• Investor Speculation – commodity funds can cause significant market fluctuations in a short period.

Prices and the Global Economy

Fluctuations in metal prices impact the entire economy. Higher steel prices increase the costs of infrastructure investments, and the rising price of copper translates to higher production costs for electronics and electric vehicles. This illustrates how closely the raw material economy is linked to consumers' everyday lives.

Summary

Metal prices are never random—they result from complex global processes. These fluctuations highlight how strategic copper, aluminium, and steel are in a world rapidly moving towards green transformation and digitalisation.