Talk of a super-cycle in metal prices at the start of the year looks a little less plausible after the six per cent fall in the London Metal Exchange’s base metal index during the past four months. But recent data suggest that prices may not have much further to fall.

Metal prices, with the exception of copper, are up to 25 per cent off their long term highs struck last year. That follows a cooling in China’s rapid economic growth rates which has affected of metal consumption growth. Metals demand in the US, Europe and Japan is also being affected by slowing economic growth.