LME Week highlights volatility in battery metals and copper demand

During the annual LME Week in London, industry experts discussed shifting dynamics in the metals market, specifically regarding cobalt, lithium, and copper.

Cobalt and lithium prices have faced downward pressure recently. The cobalt market is currently experiencing bearish sentiment due to weak demand signals from China, which serves as a primary refining hub, and unexpected alternative supply. While the Democratic Republic of Congo maintains its cobalt export quota system through 2027, market participants are watching for potential interventions from the DRC regulator, ARECOMS, to address recent price challenges. Additionally, there is speculation regarding potential supply-restricting measures from Indonesia.

Copper remains a focal point due to its role as a manufacturing bellwether and its increasing link to global investments in next-generation data centers. Despite copper prices holding near record highs, market outlooks remain divided. While the International Copper Study Group anticipates a global supply surplus of 104,000 metric tons this year and a larger surplus next year, supply remains fragmented by various government policies and regional inventory shifts.