Daily Metals

THIS MORNING The supplied trading indications, dated Friday, October 9, were mostly above Wednesday’s official closes from October 14. Tin showed the largest gap, up 4.9% at $52,900 a tonne, while lead was the only clear fall, down 2.2% at $1,820. Aluminium and zinc were both 2.3% higher, nickel was up 1.0% and copper added 0.3%. These comparisons should be treated cautiously because the indications are older than Wednesday’s closing prices. MACRO & GEOPOLITICS Stronger U.S. inflation has raised the risk of further interest-rate increases and pressured industrial metals. September headline inflation reached 3.7%, above the 3.6% forecast, while core prices rose 0.3% month on month against an expected 0.2%. Asian shares fell sharply, although a rally in government bonds and comments from Federal Reserve officials later reduced expectations of an October rate increase. Brent crude fell to around $104.20 a barrel as traders weighed the potential effect of sanctions relief on supply against attacks on shipping through the Strait of Hormuz. BASE METALS Copper slipped 0.2% to about $14,459 a tonne in early London trading as weaker share markets and higher-rate concerns outweighed continuing supply risks. A strike was avoided at Escondida, removing one major threat, while workers remained on strike at Centinela and part of El Teniente was suspended. The refined copper market is forecast to show a 104,000-tonne surplus in 2026, widening to 368,000 tonnes next year. Aluminium fell for a third session to around $2,965 a tonne, its lowest level in more than nine months. Zinc eased, nickel was little changed and lead edged higher. Tin fell below $50,000 before recovering slightly, extending its sharp correction. PRECIOUS METALS Gold rebounded about 1% to $4,147 an ounce as the dollar retreated from an 18-month high. The recovery followed Wednesday’s fall to a one-week low after the stronger U.S. inflation report. Silver gained 0.7% to $56.01, platinum rose 1% to $1,608 and palladium advanced 1.3% to $1,108. Precious metals remain sensitive to changing expectations for U.S. interest rates, with stronger economic data likely to renew pressure from the dollar and bond yields. STEEL European steelmakers are advancing major electric-steel projects. ArcelorMittal said it was making progress on a new electric steel mill in Dunkirk and another facility in Mardyck, with planned investments of 1.3 billion euros and 500 million euros, respectively. High energy and financing costs remain important challenges for energy-intensive steel production.