Jennifer Kary

The Automotive MMI ( Monthly Metals Index ) reduced its downward price action, moving sideways month-over-month by 0.43%. While the automotive industry dodged a bullet with the east coast port strike only lasting 3-4 days, the industry could still face more pressure due to lower steel output. Thanks to ongoing mill maintenance that began in August, hot-dipped galvanized steel prices could witness short-term price increases, which will introduce bullish momentum into the automotive industry.

The Construction MMI ( Monthly Metals Index ) moved sideways, nudging up just 2.54%. Overall, the index continues to move in its more than year-long sideways range, with metal prices remaining stagnant. While the index had a slight response to the September interest rate drop, it will take a lot more than that to generate any type of noticeable momentum up or down. However, it is worth noting that aluminum sheet prices in Europe and steel prices in the U.S. are showing more movement than in the past several months, which could impact the overall U.S. construction industry.

The Renewables MMI ( Monthly Metals Index ) slowed down its upward price action and moved sideways, edging down by 0.12%.

The Rare Earths MMI (Monthly Metals Index) saw its upward price action slow as prices experienced only a slight uptick of 0.38%. While upward price action for rare earths did lose steam month-over-month, prices could soon witness another bullish boost. Not only did China’s rare earth export ban go into effect as of October 1, but Australia, a large manufacturer of rare earths, is now experiencing supply chain disruptions.

Supply chain disruptions in Australia, including funding issues for Iluka Resources'refinery project and sulfuric acid shortages for Lynas Rare Earths, are impacting the global rare earth market.

The Rare Earths MMI ( Monthly Metals Index ) trended sideways with a slightly downward movement of 2.59%.

The Automotive MMI ( Monthly Metals Index ) remained sideways, only moving down 2.58%. There are currently no significant factors within the US automotive market causing much movement in price action, and automotive sector as a whole remains slow. Despite this, concern about incoming tariffs from the new Trump administration remains palpable. While Trump hasn’t threatened tariffs on large automotive manufacturing nations like Japan or Germany, any hot-dipped galvanized steel products coming out of China will be subject to Trump’s proposed tariffs. This could create more market volatility and place pressure on the automotive industry in the long term.

The resignation of Stellantis CEO Carlos Tavares has created uncertainty in the US automotive market.

The Global Precious Metals MMI ( Monthly Metals Index ) dropped month-over-month by 7.66%.

Palladium and platinum prices are declining due to the rise of electric vehicles and mining restrictions.