Metals Daily

THIS MORNING At the start of Wednesday, October 14, the supplied trade indications carried over from Friday, October 9, were mixed against Tuesday’s, October 13, official closes. Lead was the weakest metal, down 2.5% at $1,820 a tonne, while tin was the strongest, up 2.3% at $52,900. Zinc was 2.0% higher at $3,805, aluminium and nickel were each up 0.5%, and copper was 0.3% lower at $14,529. MACRO & GEOPOLITICS Markets were cautious ahead of the September U.S. inflation report, which economists expected to show annual price growth accelerating to 3.6% from 3.4%. A stronger-than-expected reading could revive expectations of another Federal Reserve rate increase and support the dollar. Brent crude rose above $106 a barrel after further attacks involving Saudi Arabia, keeping energy costs and inflation risks elevated for European industry. China provided some support, with September exports rising 36.3% year on year, although weak domestic demand remained a concern. European share futures were modestly higher early Wednesday, but elevated borrowing and energy costs continued to limit confidence. BASE METALS Copper rose in early trading as supply risks in Chile remained in focus. BHP and the supervisors’ union at Escondida held last-minute government-mediated talks aimed at averting a strike, while negotiations resumed at Centinela and operations at part of El Teniente remained suspended after a fatal landslide. Aluminium was little changed near $3,040 a tonne, but physical premiums remained elevated because Gulf production and shipping had not fully recovered. Nickel rose despite forecasts for a 19,000-tonne global surplus this year, widening to 70,000 tonnes in 2027. Zinc edged higher and lead was broadly flat. Tin weakened, with the most-traded Shanghai contract falling about 3%, adding to Tuesday’s sharp decline in London. PRECIOUS METALS Gold held near $4,165 an ounce before the U.S. inflation release, supported by geopolitical tensions but restrained by the prospect of higher interest rates. Silver eased to around $59.33, platinum was steady near $1,663 and palladium gained about 0.7%. Weaker economic data could reduce pressure for further U.S. rate increases and support precious metals, while a stronger inflation reading would probably lift bond yields and the dollar. STEEL The outlook for European steel demand remained clouded by pressure on the vehicle industry. Volkswagen warned that mass-market carmakers faced severe strain from high energy costs, Chinese competition and the costly shift to electric vehicles. BMW’s global deliveries fell 6.4% in the third quarter, while Stellantis shipments declined 1%. Renault also warned that it might have to cut European production by roughly 300,000 vehicles unless emissions rules became more flexible, pointing to continued caution among flat-steel buyers. RARE EARTH METALS China exported 4,269.8 tonnes of rare earths in September, up 6.7% from a year earlier as overseas buying improved after the summer slowdown. Shipments were still 9.8% below August, while exports during the first nine months of 2026 fell 9.6% year on year. The figures indicated a monthly recovery in demand, although overall trade remained weaker than a year earlier. Chinese supply remained important for European electric-vehicle, wind-power and defence manufacturers. FOREX The euro was little changed near $1.120 against the dollar as the U.S. currency eased from an 18-month high. The dollar index slipped to about 102.17 as investors awaited the inflation figures, while the yen remained weak near 158 per dollar. For European scrap traders, the euro’s modest recovery offered limited relief on dollar-priced metal purchases, but the currency remained weak enough to keep imported material and energy costs elevated. WATCH TODAY U.S. consumer inflation was due at 12:30 GMT and was the main event for metals, currencies and bond markets. The Federal Reserve’s Beige Book was scheduled for later in the day, alongside speeches from several policymakers. Results from Bank of America, Morgan Stanley and BlackRock could also influence broader risk appetite.