Copper, Aluminium Prices Rise Amid Supply Concerns as Crude Oil Futures Slip

💡 Commodity prices fluctuated on January 12, with copper and aluminium rising amidst supply concerns and crude oil futures slipping due to weak global cues.

The commodity market witnessed a mixed trend on January 12, with copper and aluminium prices rising amidst supply concerns. The aluminium price, which was trading at $2,200 per tonne, surged by 2% on the London Metal Exchange (LME) due to a shortage of supply. The copper price also rose by 1.5% to $8,300 per tonne on the LME, driven by concerns over supply and demand.

Metal Prices Hike

The aluminium price hike can be attributed to a combination of factors, including supply chain disruptions and increased demand from the automotive and packaging industries. The aluminium industry has been facing production constraints due to the COVID-19 pandemic, which has led to a shortage of supply. As a result, the aluminium price has risen significantly in recent months.

Crude Oil Futures Drop

On the other hand, crude oil futures slipped on the Intercontinental Exchange (ICE) due to weak global cues. The crude oil price, which was trading at $72 per barrel, fell by 1.2% after the International Energy Agency (IEA) cut its global oil demand forecast. The IEA attributed the decline in oil demand to a slowdown in economic growth and a rise in renewable energy production.

Market Reactions

The mixed trend in commodity markets has led to a reaction from investors. The crude oil price decline has affected the energy sector, with shares of oil majors such as ExxonMobil and Chevron falling by 1.5% and 2% respectively. On the other hand, the aluminium price hike has led to a surge in shares of aluminium producers such as Alcoa and Rio Tinto, which rose by 3% and 2.5% respectively.

What It Means for Investors