For the Quarter Ending September 2025
North America
• In United States, the Brass Alloy Price Index rose quarter-over-quarter in Q3 2025, driven by significant production cost increases.
• Brass Alloy production costs increased, with CPI up 3.0% in September 2025 and PPI up 2.6% in August 2025.
• A 50% tariff on US copper semi-finished imports, effective August 2025, significantly elevated Brass Alloy feedstock expenses.
• Demand for Brass Alloy showed mixed signals, though US retail sales increased 5.42% year-over-year in September 2025.
• Industrial production saw a modest 0.1% year-over-year increase in September 2025, indicating slight manufacturing growth.
• The low unemployment rate of 4.3% in September 2025 supported consumer spending, despite declining consumer confidence to 94.2.
• Multifamily housing starts strengthened through August 2025, while single-family starts declined, impacting construction demand.
• Brass Alloy price forecast suggests continued upward pressure from high input costs and mixed, yet resilient, demand.
Why did the price of Brass Alloy change in September 2025 in North America?
• Production costs surged due to a 50% tariff on US copper semi-finished imports effective August 2025.
• Inflationary pressures, with CPI up 3.0% (September 2025) and PPI up 2.6% (August 2025), elevated raw material costs.
• Despite mixed demand, resilient retail sales and strengthening automotive sector demand provided some price support.
APAC
• In China, the Brass Alloy Price Index rose quarter-over-quarter in Q3 2025, driven by rising input costs and robust automotive demand.
• Brass Alloy production costs increased in Q3 2025, with input cost inflation accelerating in September due to higher metal prices.
• Industrial production increased 6.5% year-on-year in September 2025, significantly supporting Brass Alloy demand.
• The Manufacturing Index contracted in September 2025, indicating reduced industrial activity impacting Brass Alloy demand.
• Retail sales rose 3.0% year-on-year in September 2025, indirectly boosting Brass Alloy demand in consumer applications.
• China's CPI decreased 0.3% year-on-year in September 2025, suggesting weak consumer demand for Brass Alloy end-products.
• SHFE copper stocks declined to multi-year lows in Q3 2025, tightening supply for a key Brass Alloy feedstock.
• The Brass Alloy price forecast suggests continued pressure from raw material costs and fluctuating industrial sector performance.
Why did the price of Brass Alloy change in September 2025 in APAC?
• Rising input costs, including higher metal prices and negative copper concentrate processing fees, increased production expenses.
• Robust automotive sales and a 6.5% rise in industrial production boosted Brass Alloy demand.
• Declining SHFE copper stocks tightened supply, while weak consumer confidence tempered market sentiment.
Europe
• In Germany, the Brass Alloy Price Index rose quarter-over-quarter in Q3 2025, driven by tightening feedstock supply and increased production costs.
• Despite a 1.7% decline in Producer Price Index (PPI) in September 2025, Brass Alloy production costs strengthened due to specific feedstock increases.
• Brass Alloy production costs strengthened in Q3 2025, influenced by rising zinc expenses and upward natural gas prices in August 2025.
• Demand for Brass Alloy faced headwinds as Germany's Manufacturing Index was contracting in Q3 2025, indicating reduced industrial activity.
• Industrial production in Germany declined by 1.0% in September 2025, negatively impacting Brass Alloy consumption in key industrial sectors.
• European zinc inventories tightened in Q3 2025, while global copper supply faced disruptions, supporting Brass Alloy price trends.
• The stable unemployment rate at 6.3% in September 2025 offered neutral to slightly bullish support for Brass Alloy demand.
• Retail sales in Germany rose by 0.2% in September 2025, offering slight support for Brass Alloy demand in consumer-facing applications.
• Consumer Price Index (CPI) increased by 2.4% year-over-year in September 2025, contributing to higher overall operational costs.
• The Brass Alloy Price Forecast suggests continued pressure from supply-side constraints despite subdued industrial demand in Q3 2025.
Why did the price of Brass Alloy change in September 2025 in Europe?
• European zinc supply tightened in Q3 2025 due to mine curtailments and smelter maintenance.
• Global copper supply faced disruptions in Q3 2025, shifting the market towards a deficit.
• Germany's industrial production declined by 1.0% in September 2025, dampening overall demand.
