Daily metals

This Morning Base metals were mostly higher early on Tuesday compared with Monday’s official close. Tin led the gains, rising 0.8%, while copper and aluminium both advanced 0.6%. Nickel added 0.1%, zinc eased 0.1% and lead was effectively unchanged. The gains suggested some bargain buying after Monday’s weakness, although the broader mood remained cautious ahead of major central-bank decisions. Macro & Geopolitics Oil and bond markets remained the main risks for European metals businesses. Brent crude climbed towards $107 a barrel as further attacks on Saudi targets increased concern about energy supplies and shipping routes. The rise is adding to inflationary pressure and could lift transport, power and processing costs. U.S. 10-year Treasury yields reached 5%, while markets priced in a more than 90% chance of a Federal Reserve rate increase on Wednesday. Japanese rates were also expected to rise on Friday. Expensive energy, tighter credit and weaker global shares could limit industrial demand even if physical metal buying improves at lower prices. Base Metals Copper recovered as lower prices attracted buyers in China, with the premium paid for imported copper reaching its highest level since mid-August. However, LME warehouse stocks increased to 242,900 tonnes and the cash copper contract traded at a large discount to the three-month contract, indicating that short-term supply tightness had eased. This could cap the recovery while traders await clearer U.S. tariff policy and the Federal Reserve meeting. Aluminium and tin also rose early on Tuesday, while nickel posted a smaller gain. Zinc edged lower and lead held close to Monday’s close. A strong dollar and rising borrowing costs remained obstacles for manufacturers and metal traders. Precious Metals Gold steadied near $4,301 an ounce after touching its lowest level since August 7 on Monday. Investors were preparing for a likely quarter-point U.S. rate increase, with the central bank’s guidance on the future path of monetary policy expected to matter more than the decision itself. Silver edged higher to around $63.28, while platinum and palladium slipped. Middle East tensions provided some support, but rising bond yields and a firm dollar continued to make precious metals less attractive to investors. Steel China’s daily average crude steel production fell 3% from July in August to its lowest level in eight months, as weak demand and deteriorating margins led mills to extend maintenance or reduce operations. In Europe, an India-EU trade agreement would provide India with a combined steel quota of 1.64 million tonnes a year, including an additional preferential quota of 694,853 tonnes. Carbon-related costs would still apply, and shipments above the quota would face a 50% tariff under an analysis of the agreement’s legal text. Britain is also considering the public acquisition of insolvent specialist steelmaker Speciality Steel UK, which supports more than 1,300 jobs. These developments underline continued government involvement in protecting strategic steel capacity. Forex The euro traded near $1.1543, remaining under pressure as higher U.S. yields supported the dollar. A weaker euro makes dollar-priced metals, fuel and freight more expensive for European buyers, partly offsetting the benefit of any decline in international commodity prices. The dollar could remain firm before Wednesday’s Federal Reserve announcement, particularly if policymakers signal a more restrictive policy stance. Sterling traders will also assess British employment figures ahead of Thursday’s Bank of England decision. Watch Today British labour-market figures, final French inflation data, Germany’s ZEW confidence survey, Germany’s wholesale-price index and the EU trade balance are due on Tuesday. The Federal Reserve also begins its two-day meeting, although its policy decision will be announced on Wednesday. European traders should watch whether the data add to pressure for higher interest rates or point to weaker industrial demand.