Aluminum and Copper Prices Decline: Fed Expectations Have Been Effective

Aluminum and Copper Prices Declined

As of today, aluminum and copper prices have shown a decline due to investors waiting for delayed U.S. economic data and decreasing expectations for an interest rate cut by the Federal Reserve (Fed).

Decline in Industrial Metals Becomes Evident

This decline in the markets is part of a flight from riskier assets ahead of critical developments to be announced in the coming days.

Expectation of Critical Employment Report

Especially the U.S. employment report to be released on Thursday is expected to be influential in determining the Fed's next move. Some Fed officials have expressed caution regarding further interest rate cuts, negatively affecting the demand outlook for commodities.

Record Highs from Early November Left Behind

At the beginning of November, aluminum prices reached their highest level in 3 years at $2,792.50 in the last closing. Analysts noted that strong demand from China and global supply issues contributed to the price increase. However, ongoing concerns about the U.S. economy and monetary policy have led to a decline in aluminum and other metals.

Market Figures

As of the morning hours, aluminum on the London Metal Exchange (LME) dropped to $2,792.50 per ton, aiming for the lowest closing since October 21. Copper lost 0.3%, while zinc declined by 0.5%. Additionally, iron ore futures on the Singapore Exchange fell by 0.5% to $103.90 per ton.