Daily metals

Base metals began Thursday on the defensive, with all six trading below Wednesday’s official closes. Tin recorded the largest decline, falling 1.6% to $54,350 a tonne, while nickel dropped 1.4% to $16,690 and aluminium lost 1.0% to $3,180. Copper eased 0.1% to $14,038.50, remaining above the key $14,000 level. Lead and zinc also slipped about 0.1%, trading at $1,840.50 and $3,706.50, respectively. Macro & Geopolitics Sovereign debt markets recovered after the U.S. Treasury doubled planned buybacks of longer-duration securities, pulling the 30-year yield down to about 5.19% and easing financing concerns. The relief lifted Asian equities and weakened the dollar, although European stock futures remained slightly softer. Federal Reserve minutes retained a hawkish undertone: several policymakers were prepared to raise rates in July, and many saw further tightening as necessary if inflation does not decline to the central bank’s 2% target. Brent crude held near $91.70 a barrel as traffic through the Strait of Hormuz remained slow, keeping energy, freight and European industrial cost risks elevated. Base Metals Copper held above $14,000 as dollar weakness partly offset another increase in LME inventories. Exchange stocks rose by 12,425 tonnes on Wednesday to 235,975 tonnes, up 11% in a week but still 40% below levels three months ago. The temporary shutdown at Peru’s Las Bambas mine followed an accident that killed two workers and injured three others; a gradual restart was scheduled to begin on August 21. Aluminium faced additional pressure from a proposed U.S.-Canada agreement that could cut tariffs on Canadian steel and aluminium to 25%, potentially drawing some diverted units back toward the U.S. market. Nickel and tin posted the largest early losses, while lead and zinc stayed comparatively close to Wednesday’s settlements. Precious Metals Gold fell nearly 1% to around $4,478 an ounce as traders took profits following Wednesday’s gain of more than 4% and a more-than-two-month high. The weaker dollar and lower bond yields remained supportive, but Federal Reserve concerns over persistent inflation limited confidence in sustained monetary easing. Silver edged higher to about $67.07, while platinum declined 1.3% to roughly $1,802 and palladium slipped to around $1,328. Steel A proposed U.S.-Canada trade agreement could halve the headline tariff on Canadian steel to 25%, although reduced duties are expected to apply only within a quota, potentially around four million tonnes annually. Volumes above the threshold could remain subject to a 50% tariff. For European buyers and recyclers, lower U.S. barriers could redirect Canadian material back toward its traditional market, reducing import competition in Europe. The agreement remained under negotiation ahead of Saturday’s deadline. Rare Earth Metals The U.S. International Development Finance Corporation has committed $62.8 million to rare-earth projects in Malawi, Angola, Madagascar and South Africa, but none has entered production. Around $50 million is allocated to South Africa’s Phalaborwa project. Private investors remain cautious because of development risk, uncertain project economics and the potential for Chinese supply or pricing decisions to undermine returns. The funding supports longer-term diversification of Western supply chains but offers no immediate relief for European consumers. Forex The euro traded around $1.1672, near its strongest level since May 29, as the dollar index hovered near a two-and-a-half-month low at 98.87. Sterling also strengthened to about $1.3614. For euro-area scrap processors and metal consumers, the firmer single currency partly offsets elevated dollar-denominated LME prices and energy costs. However, the benefit may be limited if oil above $90 continues to raise freight, power and processing expenses. Watch Today Germany releases July producer-price data, while Sweden’s Riksbank is expected to keep its policy rate at 1.75%. U.S. initial jobless claims and the Philadelphia Fed manufacturing index are due at 12:30 GMT, followed by an $8 billion sale of 30-year inflation-linked Treasury debt. U.S.-Canada negotiations remain important for European aluminium and steel trade flows.