Metal Market remained volatile during the year 2013.In the beginnings of the year metals were on their high level. With the passage of time there was slow downside movement in all metals. GSCI gauge of all commodities fell at the year low on 18th April and on yoy basis the index fell by 2.21%.All base metals reached their lowest level during the period of April to June. Majorly of these metals fell due to slow manufacturing expansion, stable home sales and vehicle sales, and slow industrial growth at large economies of the world.
If we look at the performance of base metals then among the all top loser is Nickel with annual loss of 18.50% while Zinc lost the least by 0.46% last year. In precious metals Silver remained worst performer by falling 35.8% and Gold, the second worst fell by 28.15%.
In 2014 base metals are expected to remain volatile. Copper supply is expected to fall as new mines are opening that may keep inventory in surplus. During first quarter of the year copper is expected to reach near to $7000.In Nickel, to boost value of commodities shipments by promoting domestic processing the world largest mined nickel producer, Indonesia, will ban exports of mineral ores after Jan. 12 that is expected to push prices up near to $14000. Aluminum may gain as vehicle sales and new home sales may increase in New Year and the metal may trade near to $1828. While Zinc and Lead are expected to reach at the price of $2058 and $ 2027.
Fed may trim its bond buying program of remaining $75 billion by the end of the year. It may adversely affect the metal market. Further, if growth at China, world highest metal consumer, slows then it will also contribute to deepening prices.