Daily metals

What's Moving Markets?Global equities were higher amid growing expectations of a Fed rate cut next month. The prospect of easing monetary policy lifted industrial and precious metal markets. Oil was steady despite peace talks between Russia and Ukraine progressing. Yields on 10-year US Treasuries were unchanged at 4.00%, while the USD index was steady at 99.6.Proposed Teck-Anglo merger is subject to national security review, Canada says. Canada will submit the proposed merger of Anglo American and Teck Resources to a national security review, Industry Minister Melanie Joly said. "The national security review for any transaction is always part of the process... so we're following the process," she told reporters from South Korea via a teleconference.Precious metals consolidated, underpinned by growing expectations of a Fed rate cut next month. PGMs benefitted from the launch of contracts on platinum and palladium by China’s Guangzhou Futures Exchange. The new contracts are expected to broaden market participation and fuel optimism about Chinese demand. This launch is transformative for China's PGMs market. For the first time, domestic industrial users and fabricators have a direct, regulated tool to hedge against global platinum and palladium price volatility. Previously, many were exposed to this risk without an efficient hedging mechanism. Ultimately, this boosts consumer confidence and supports demand growth, while also encouraging a more robust domestic recycling ecosystem. This initiative directly supports China's national strategic priorities. GFEX's mandate is to develop financial instruments that serve the real economy. Given the government's strong focus on the energy transition and decarbonisation, platinum and palladium have been prioritised.Asia Copper Week - Codelco's record China copper offer sparks threats to walk away, sources say. Chilean copper heavyweight Codelco's record-high offers to Chinese copper buyers are leading some to declare they will opt out of next year's term contracts as questions grow about the relevance of the benchmark for Chinese buyers. The Codelco premium, which is paid on top of LME copper prices, is often used as a reference for global copper supply contracts, as Codelco is the world's largest copper producer and China the largest consumer.Base metals jumped higher on a combination of a softer USD and more bullish pressures stemming from copper. The jump toward the key $11,000/t level further underscores the fragility of the current refined market. The copper market remains sensitive to mine disruptions, with 2025 seeing nearly 929kt lost due to unplanned outages. The outage effects extend into 2026 and possibly 2027, increasing supply risk and potential price volatility. Codelco pushing for a hike in its annual premium over LME prices for 2026 annual contracts reflects the increased tightness in the global copper market. A sustained move above this level appears unlikely in the near term from a fundamental standpoint, suggesting that prices may soon enter a phase of short-term consolidation. Nevertheless, longer-term bullish factors remain intact, with growing upside risks for copper, especially into 2026, if further supply disruptions emerge. This is expected to provide solid support for aluminium and zinc, given their close correlation with copper.Iron ore gained as state media in China suggested Beijing is considering measures such as providing new homebuyers mortgage subsidies, raising income tax rebates for mortgage borrowers, and lowering home transaction costs in an effort to stabilise its ailing property sector. This also garnered some buying in the iron ore market, despite data showing that China’s finished steel production fell 4.5% m/m in Oct to 118.63Mt.