Volatile metal markets amid global inflation pressures

Industrial metal prices have swung wildly over the past week amid rising concerns about global inflation and pressure in the global bond markets. Copper, long considered an important barometer of global economic health, has also experienced sharp volatility. The August copper futures contract on the London Metal Exchange dipped 1.3 percent on Tuesday before recovering to rise 0.5 percent on Wednesday to US13, 477pertonne, oraboutRp238.4millionpertonne, withanexchangerateofRp17, 687perUS. Copper is widely used in electrical cables, industrial machinery, and piping. Consequently, price movements are often used by markets to gauge the direction of the global economy. The volatility coincides with large swings in global bond and equity markets. Yields on US government bonds climbed to multi-decade highs as investors worry that the Iran conflict will keep energy prices elevated and worsen inflation. Pressure on industrial metals now comes from two directions: weakening global demand and supply disruptions due to geopolitical conflict. Around 55 percent of zinc demand comes from the construction sector. If the global economy slows and construction activity falls, zinc consumption could weaken sharply. “On the supply side, higher costs for diesel, acids, and explosives weigh on margins, but this should not pose a problem for metal prices at present,” wrote Macquarie analysts, as reported by CNBC, Thursday (21/5/2026).