Daily Metals

THIS MORNING Base metals opened the week mostly higher compared with Friday’s official close. Nickel led with a 0.7% rise, followed by copper at 0.7% and lead at 0.6%. Aluminium fell 0.2% and tin eased 0.1%, while zinc was virtually unchanged. The stronger copper and nickel readings gave the market a firmer tone at the start of the European business day. MACRO & GEOPOLITICS Global markets steadied as investors awaited Apple’s results after October’s sharp technology-sector selloff. Oil fell by more than 3% as Iranian and Qatari officials continued talks aimed at ending the US-Israeli war on Iran, although risks to Gulf shipping remained. Lower oil prices offered some relief from inflation concerns. Markets still saw roughly a 72% chance of a US rate increase in December, while the Bank of England and Sweden’s Riksbank were also expected to raise rates this week. Separately, US President Donald Trump said the United States and Canada had the concept of a new trade deal and were close to an agreement, but provided no details. BASE METALS Copper recovered as physical supply remained tight, outweighing recent concerns about technology investment and economic growth. Chile sharply reduced its 2026 production forecast, while flows of copper into US warehouses created regional bottlenecks and fuelled supply concerns. In China, the premium paid for imported copper rose to about $200 a tonne, while exchange-monitored stocks fell by more than 75% in six months. Lower oil prices eased pressure on economic activity and on demand for growth-sensitive industrial metals such as copper. Nickel and lead recorded the strongest gains after copper in the morning session, while zinc remained flat. Aluminium and tin were slightly softer, indicating that support was not shared evenly across the complex. PRECIOUS METALS Gold rebounded by about 1% to around $3,911 an ounce after falling below $4,000 and reaching a one-year low on Friday. Softer oil reduced immediate inflation concerns, but expectations of another Federal Reserve rate rise continued to limit the recovery. Silver gained about 1.2%, platinum rose 0.8% and palladium advanced 1.1%. Precious metals remain vulnerable if US economic data strengthens the case for higher interest rates. STEEL Results from South Korea’s POSCO showed uneven conditions across the steel chain. POSCO Holdings reported a 48% annual increase in third-quarter operating profit, but its POSCO steel unit’s profit fell 22%, while POSCO Steeleon recorded a 96% decline. In Germany, engineering workers began warning strikes after rejecting an employer pay offer. The dispute covers 3.7 million workers and includes employees at Thyssenkrupp’s Rasselstein operation. Further strikes could cause short-term disruption if the action widens. RARE EARTH METALS Australia’s Sunrise Energy Metals approved the final investment decision for its Syerston scandium project. The development is expected to cost $322 million, with first production targeted for the second half of 2028 and planned output of 60 tonnes of scandium oxide a year. Elsewhere, Livium and Sumitomo are studying an Australia-to-Japan battery-recycling supply chain. Sumitomo has started preparations for possible purchases of recycled black mass, although no binding agreement has been signed. FOREX The euro was slightly firmer near $1.117 against the dollar, while major currency markets otherwise showed little movement. For European scrap traders, a stronger euro modestly reduces the local-currency cost of metals priced in dollars. The benefit could prove limited, however, as markets continued to expect further interest-rate increases in the United States and several European economies. Eurozone manufacturing figures due later in the day could influence the euro if they show a clear change in the region’s industrial slowdown. WATCH TODAY Final October manufacturing PMI figures are due from France, Germany and the eurozone, followed by the US ISM manufacturing survey. Apple reports results later today, with its margins and demand outlook likely to affect technology shares and sentiment towards copper-intensive data-centre investment. Several European Central Bank policymakers are also scheduled to speak.