LME Base Metals Summit 2019

Held on 28 October 2019, the summit connects representatives of the global metals community as part of London Metals Exchange Week.

8th annual event

a linchpin of LME Week

400+ market participants

a strong indication of market sentiment in the metals industry

200+ client companies

all here at the London hub to exchange current views of the market outlook

Key takeaway from 2019


"A year ago, we were focused on the US-China trade conflict. A year on, the conflict persists, alongside a deterioration in global growth. And with multiple supply shocks in nickel, iron ore, coal and gas distorting prices across commodity markets, we look at the potential impacts of further economic stimulus."


- Tom Price, Head of Commodities Strategy, Commodities and Global Markets

 

 

2019 has been a big year for commodity markets. Watch the market themes that have dominated the headlines this year.

 

We think differently

With access to physical trading expertise in the issues and trends that drive markets, we provide comprehensive insights across the commodities spectrum.

Aluminium: plainly weak

Last year, we experienced numerous shocks to the supply of aluminium – mainly from Rusal’s sanctions and Alunorte’s forced closure. This has given way to 2019's more conventional price-driving themes. Relentless China-centric supply and capacity growth, deteriorating global demand growth and a collapse in the key input costs to alumina and power have characterised this year’s market.

Iron ore: value over volume

Seaborne iron ore delivered one of the strongest performances in our commodity cover this year, characterised by a surprisingly robust steel demand growth in China, technical industry issues in Australia and a dam failure in Brazil. Making iron ore’s performance completely at odds to the surplus-hit coal prices and the aggressive macro-cap on industrial metal prices.

Positive medium-term for gold

In 2019, geopolitical conditions have provided a near-perfect backdrop for the gold market. We experienced weak but positive global growth, subdued interest rates and heightened geopolitical tensions – in US-China trade and the Middle East too. All of which have lifted gold's price to heights not seen since 2013.

Copper’s outlook still hangs on China’s

Copper prices have been riding the wave of the US/China trade war since it began in 2018, resulting in its market being priced and dedicated in strife with the accompanying headwinds for global economic activity.

Electric vehicles push nickel into the limelight

Nickel has reported one of the strongest price performances 2019, thanks in part to the September announcement by the Indonesian government that it was bringing forward a ban on nickel ore exports from 2020 to 1 January 2022.

Three ways to trade a changing China

Metals industry should look to the country’s longer-term needs.

Our metals expertise

Macquarie has been operating continuously in metals markets for more than 40 years, giving us one of the longest track records globally in this market for a financial institution.

We connect producers, consumers, investors and merchants, working with our clients to manage risk, finance operations and gain strategic insight into their businesses and the markets in which they operate.

With capabilities across the metals value chain, we deliver comprehensive financing and risk management solutions for our clients, including:

  • Market-leading technical and fundamental insights
  • Customised solutions encompassing physical product, derivatives and financing
  • Cross-commodity and cross-market structuring
  • Liquidity in both derivatives and physical markets
  • Tailored investment solutions through Commodity Investor Products
  • Financing capabilities for metals in port or in transit
  • Financing warehoused metal in cash and carry trades, third party stock and repo finance
  • Logistics services.

Ariel Seldman

Managing Director
Metals | Americas
+1 212 231 6317
ariel.seldman@macquarie.com

Rohan Khurana

Senior Managing Director
Metals | Asia
+65 6601 0308
rohan.khurana@macquarie.com

Nael Noueiri

Managing Director
Metals | EMEA
+44 20 3037 4913
nael.noueiri@macquarie.com

Peter Barnes

Managing Director
Metals | EMEA
+44 20 3037 5968
peter.barnes@macquarie.com