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A manufacturing boom boosts demand for industrial metals

April 13, 2024
According to foreign news on April 11, compared with the previous month, the construction MMI(monthly metal index) was sideways for the fourth consecutive month, falling only slightly by 2.87%. Iron ore suffered by far the biggest price fall of any industrial metal, falling to a 10-month low before rebounding slightly. The main sector supporting the rise of the index is the 1050 aluminum plate from Europe.
The U.S. construction boom continues to drive demand for industrial metals such as steel and aluminum. However, high interest rates are still a topic of conversation. With the Federal Reserve holding off on cutting interest rates until the second half of 2024, the U.S. construction industry will continue to face obstacles including project delays.
The United States continues to experience a manufacturing boom, with a surge in industrial activity driving demand for a variety of metals. According to the report, real manufacturing construction investment has tripled since the end of 2021, mainly in the computer, electronic and electrical manufacturing industry.
In addition, the World Economic Forum reports that there has been a significant increase in the use of industrial metals, including iron ore, aluminum, copper and zinc, in steelmaking and construction over the past few decades.
Earlier this month, the Institute for Supply Management (ISM) released data showing that U.S. manufacturing production rebounded in March and new orders increased, but factory employment remained sluggish and input prices rose.
At the same time, manufacturing outside the United States continues to grow. According to WEF research, a recovery in the global manufacturing sector could be particularly positive for the copper market.
Many national projects continue to be delayed or canceled due to the difficulties facing the U.S. construction industry. This in turn has had a negative impact on the industrial metals market.
One of the key reasons for the continued disruption of construction projects is ongoing supply chain issues. Even four years later, the pandemic's severe disruption to global supply chains remains a problem, hitting the construction industry particularly hard.
A shortage of common building materials such as steel, cement and wood is also pushing up prices.
All these factors continue to have a negative impact on the demand for industrial metals. Materials like steel, aluminum, and copper are commonly used in the construction industry, among a variety of other applications. This includes plumbing and electrical systems within the building structure. However, demand for certain metals continues to diminish due to delayed or canceled construction projects, resulting in lower prices and less funding for suppliers and manufacturers.