Overall sentiment across the commodities softened in June. The Bloomberg Industrial Metals Subindex (BCOMINTR) was down 7.63% over the month, while the broader Bloomberg Commodity Index (BCOMTR) declined by 8.54%. Most sectors ended the month in negative territory, with Softs and Live commodities standing out as the only segments in positive territory.
Year-to-date, performance remains differentiated across sectors: Precious Metals and Softs are negative, Grains and Livestock are broadly flat, and Industrial Metals and Energy are in positive territory.
The BCOMTR Index continues to outperform the BCOMINTR Index, supported by its higher exposure to energy and ongoing geopolitical tensions related to the Israel–US–Iran conflict.
INDUSTRIAL METALS
Industrial metals underwent a marked correction in June even as fundamental tightness in key markets endures.
For copper, macro and trade-policy concerns weighed on near-term sentiment despite tightening physical balances and supportive electrification demand.
As for aluminium, a rapid unwinding of geopolitical risk premia drove a sharp retracement, though longer-term demand drivers remain intact.
Nickel’s near-term weakness followed reports of higher Indonesian quotas, yet battery-chain demand and project investment continue to underpin the market.
Zinc outperformed peers as concentrate shortages and production adjustments provided tangible supply support.
PRECIOUS METALS
The precious sector experienced pronounced weakness in the month, reflecting macro and liquidity pressures.
Gold came under pressure from a firmer dollar and rate expectations, but demand metrics and central bank activity point to persistent structural interest.
Silver’s heavier liquidations amplified downside moves, although longer-term structural deficits and industrial demand create a resilient backdrop.
Platinum prices saw a clear decline over the latest month, consistent with the broader soft patch while industrial fundamentals remain supportive for the metal.
Ex-Benchmark Metals
Across the ex-benchmark metals most names softened over the month while a small number showed modest resilience.
Tin retreated over the period, reflecting the short-term repricing.
HRC steel values were mildly lower, indicating limited softness rather than a structural shift.
Steel scrap prices declined, mirroring weaker short-term scrap dynamics.
Cobalt prices fell, though battery-chain demand fundamentals continue to support the market narrative.
Lithium prices recorded a downward move in the month, but the energy transition outlook keeps the longer-term case constructive.
Bio-Based Commodities
Bio-Based materials displayed mixed performance over the month, with lumber showing strength while ethanol eased.
Lumber prices rose over the period, underpinned by supportive demand and seasonal influences.
Ethanol prices declined through the month, yet the longer-term biofuels transition and policy support remain positive for the segment.
condividi.