Capital Market Highlights: Base Metals Sector

After a gloomy 2015 where the S&P/TSX Global Base Metals Index dropped 36.4%, the index has recovered 51.1% through 2016, as base metals prices are driven higher by improving stability in China and Trump’s infrastructure expansionary plan.

Going forward, we expect the price drivers for each metal to continue to return to supply and demand market fundamentals. For many base metals, oversupply fears are slowly being corrected and the response can be seen through a drastic increase in spot pricing.

 

Metals

YTD 2016* (US$/lb.)

Year End (US$/lb.)

% Change

Copper

$2.49

$2.13

17.4%

Nickel

$4.54

$3.93

15.5%

Aluminium

$0.78

$0.68

13.7%

Zinc

$1.16

$0.73

60.2%

Lead

$0.90

$0.82

10.1%

*Source: London Metal Exchange, as at December 31, 2016