Daily Metals

THIS MORNING Base metals opened mixed on Friday. Zinc led the gains, rising 0.6% to $3,980 a tonne, while copper added 0.3% to $14,660. Lead was the weakest, down 0.5%, followed by aluminium, down 0.3%, and nickel, down 0.1%. Tin was virtually unchanged at about $53,850. The moves are measured against Thursday’s official closes. MACRO & GEOPOLITICS Surging government bond yields remained a major source of pressure on metals markets. The US 10-year yield reached 5.225%, a 19-year high, while the 30-year yield briefly topped 5.50%, as traders increased bets on another Federal Reserve rate rise in October. Brent crude eased but remained near $105 a barrel after a Houthi missile attack on Saudi Arabia revived supply-disruption concerns. Reports that the United States and Iran were exploring a phased path toward reopening the Strait of Hormuz offered limited relief. President Donald Trump and Chinese President Xi Jinping were meeting in Washington, although markets saw little evidence of progress beyond a possible extension of the US-China trade truce. BASE METALS Copper stayed firm as tight supply in China outweighed the stronger dollar. Shanghai Futures Exchange warehouse stocks fell 15.9% over the week to 47,147 tonnes, while the premium of cash LME copper over the three-month contract widened to $124.75 a tonne, pointing to tight nearby supply. Operations at Escondida, the world’s largest copper mine, were being resumed progressively after a worker was killed in a maintenance accident on Wednesday, reducing some disruption concerns. Zinc outperformed after Nyrstar began a strategic review of its loss-making Budel smelter in the Netherlands. The facility has capacity to produce 315,000 tonnes of zinc a year and is under pressure from high energy costs, weak treatment and refining charges and limited government support. Tin was steady despite Indonesian refined tin exports rising 47.98% year on year in August. China’s markets were closed for a holiday. PRECIOUS METALS Gold slipped 0.2% to about $4,271 an ounce and was heading for a weekly loss of more than 2%. A stronger dollar and rising bond yields reduced the appeal of non-yielding metals. Silver fell 0.5% to $63.59, platinum eased 0.1% to about $1,746 and palladium dropped 1.9% to roughly $1,250. Geopolitical tensions continued to offer some support, but expectations of further US rate rises remained the stronger influence this morning. STEEL India remained a net importer of finished steel during April-August. Imports rose 29.5% from a year earlier to 3.5 million tonnes, with China supplying 31.8% of the total. Exports increased 34.1% to 2.99 million tonnes, with Vietnam the leading destination, followed by the United Arab Emirates, Italy, Belgium and Nepal. Indian crude steel production increased 2.8% to 71 million tonnes. Separately, a $412.5 million US pipe-supply order for Welspun points to firm longer-term demand from energy and utility projects. RARE EARTH METALS China’s control of rare-earth processing remains a central issue in the Trump-Xi talks. US production of the two most widely used rare earths has more than tripled since last year, but domestic output currently covers only about 42% of demand. The United States is still expected to rely on imports for nearly a quarter of its needs in five years, with dependence on specialised heavy rare earths even greater. This leaves manufacturers exposed to potential export restrictions while new Western mines, processing plants and magnet factories are developed. FOREX The dollar was heading for a weekly gain of about 1%, supported by rising US yields and expectations of further Federal Reserve tightening. The euro traded around $1.138 after touching a two-month low on Thursday, while the dollar approached 159 yen. For European scrap businesses, the weaker euro raises the cost of dollar-priced primary metals, fuel and international freight. It can support euro-denominated selling prices, but expensive credit and energy may also reduce purchasing by mills and foundries. WATCH TODAY US durable-goods orders are due at 12:30 GMT, followed by final University of Michigan consumer sentiment and inflation expectations at 14:00 GMT. Bank of England Governor Andrew Bailey and New York Federal Reserve President John Williams are also scheduled to speak. Traders will continue to monitor the Trump-Xi meeting for developments on tariffs and critical-mineral supplies.