Significant price fluctuations in key metals as U.S. companies rush to secure materials before potential tariffs

From Yahoo Finance: 2025-05-16 19:00:00

In May 2025, the Renewables MMI saw a 2.83% increase, with metals like copper, steel, lithium, and cobalt experiencing significant price fluctuations as U.S. companies rushed to secure materials before potential tariffs. U.S. copper futures dropped 14% in a week, reflecting import-arbitrage dynamics, while steel prices showed a milder correction after tariff concerns earlier in the year.

Battery metals present a mixed picture, with lithium prices under pressure due to oversupply. S&P Global forecasts continued downward pressure into Q2 2025. Cobalt prices have been volatile, reaching nine-year lows in January before a surge in March due to export pause in the DRC. Policy shifts, including proposed tariffs, could impact metal markets, causing short-term volatility.

While Trump’s plan exempts copper from new tariffs, the broader trade war may still affect supplies of battery metals crucial for the clean-energy sector. U.S. renewable projects and EV supply chains rely heavily on these metals, leading to mixed market signals. Copper and steel prices have paused their tariff-driven rallies, while lithium and cobalt adjust to supply fluctuations.

The Grain-Oriented Electrical Steel MMI rose by 10.17% month-over-month in May 2025. Electric-grade steel prices have been stable to slightly rising, with North American GOES at around $3.87 per kilo in May. Rising demand for grain-oriented steel faces challenges due to tight production base and proposed trade restrictions, impacting transformer manufacturers.

Read more: Buyers Are Racing To Stock Up on Key Metals Before Tariff Deadline