Base Metals
Industrial metals — copper, aluminum, zinc, nickel, lead, tin — that trade primarily on the LME and are closely tied to global industrial output.
Base metals are the industrial workhorses of the metals complex. Unlike precious metals, they are plentiful (relatively) and valued primarily for their industrial properties. The London Metal Exchange (LME) is the dominant global venue, with COMEX also active in copper.
The group includes copper, aluminum, zinc, nickel, lead, and tin. Prices are heavily influenced by Chinese demand (China consumes ~50–60% of most base metals), energy costs (aluminum smelting is extremely energy-intensive), and mining supply disruptions.
Base metals are cyclical — they tend to outperform in economic expansions and underperform in contractions, making them sensitive macro indicators alongside equity markets.
Related Terms
Commodity
A raw material or primary agricultural product that is interchangeable with others of the same grade and traded on organized exchanges.
BeginnerCopper
The leading base metal and economic bellwether, nicknamed "Dr. Copper" for its ability to signal global economic health via demand from construction and manufacturing.
IntermediatePrecious Metals
Gold, silver, platinum, and palladium — rare, durable metals with monetary history and industrial uses, traded as safe-haven assets and inflation hedges.
BeginnerSupply and Demand Balance
The net difference between commodity production and consumption in a given period — a surplus weakens prices; a deficit strengthens them.
Intermediate