A hybrid of economic forces continues to reduce already depressed prices of metals, including gold, steel, copper, and now aluminum.
“China’s stock market crashes again as panicking sellers lose faith” reads today’s headline, underscoring the gravity of weak demand while giving speculators cause to lower oil futures below $50 per barrel.1 Mining production has increased in the face of a strong U.S. dollar, reducing overhead costs and contributing to an oversupply of metals. 2
“What we’re looking at is the perfect storm,” says Market Analyst and eCommerce Product Manager S.A. Stevenson, “None of these market forces are isolated from each other – they’re dragging down prices across the board.”
Goldman Sachs issued a note this week indicating the decline in copper prices “could continue through to at least 2018” due to high supply growth.3