This morning in metals news, the copper price picks up, the Bureau of Labor Statistics released Consumer Price Index (CPI) data and the National Australia Bank lifted its forecast for iron ore.
Copper Price Rises
The London copper price picked up Wednesday, good for its first gain in five sessions, Reuters reported.
LME copper rose 0.5% to $6,134.50 per ton, according to the report.
BLS Reports CPI Data
The Bureau of Labor Statistics on Wednesday released its latest round of CPI data. (The CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.)
According to the report, the energy index declined for the third consecutive month.
“The energy index fell 3.1 percent in January. The gasoline index continued to decline, falling 5.5 percent,” the report states. “(Before seasonal adjustment, gasoline prices fell 5.2 percent in January.) The other major energy component indexes declined more modestly in January. The electricity index fell 0.6 percent, the index for natural gas declined 0.3 percent, and the fuel oil index decreased 1.3 percent.”
A Sunny Forecast for Iron Ore?
According to S&P Global Platts, the National Australia Bank has lifted its forecast for iron ore, citing mine closures in Brazil.
Last month, a dam breach at Vale SA’s Corrego do Feijao mine — after which it declared force majeure — led to an uptick in iron ore prices, as the mine accounted for 9% of Vale’s annual iron ore output.
The National Australia Bank lifted its 2019 iron ore forecast from $62/mt to $80/mt, according to the report.