Metals Daily

This Morning Base metals are mixed at 07:00 CET on Friday against Thursday’s official close. Lead is the strongest performer, rising 0.4% to $1,861 per tonne, followed by tin at $54,795, up 0.3%, and copper at $13,835.50, up 0.2%. Zinc and aluminium are each 0.1% firmer at $3,627 and $3,199.50 respectively, while nickel is the clear laggard, falling 0.8% to $16,945. Macro & Geopolitics Risk appetite improved sharply after strong technology earnings prompted a rebound across Asian equities and lifted European futures. However, long-dated U.S. Treasury yields remain near 19-year highs as investors question whether the Federal Reserve can contain inflation, leaving financing conditions challenging for manufacturers. The Bank of Japan kept rates unchanged, weakening the yen despite suspected official intervention on Thursday. Brent crude fell towards $88 a barrel, offering some relief on European energy costs, although a drone strike that sparked fires on two gas vessels at Egypt’s Damietta port has increased concern about navigation through the Suez Canal as the U.S.-Iran conflict continues. Base Metals Copper remains underpinned by a softer dollar and tightening availability outside the United States. LME warehouse stocks fell more than 21% during July, with over 60% of remaining inventory earmarked for withdrawal, while scarce scrap in China is pushing some consumers towards refined metal. Aluminium is steady near $3,200 as LME inventories sit at their lowest level this century. Tin and lead are leading Friday’s positive moves, while zinc is marginally higher. Nickel is underperforming after Vale raised the lower end of its 2026 production forecast to 185,000 tonnes; the miner also lifted the bottom of its copper guidance range. Precious Metals Gold has slipped around 0.6% to $4,077 an ounce as the dollar stages a modest recovery and investors take profits, although bullion remains set for its first monthly advance in five months. Silver is 0.8% lower near $58.48, while platinum has dropped 1.7% to $1,631.77 and palladium is down 0.8% at $1,294. Threats to Middle Eastern shipping provide underlying support, but elevated bond yields and a roughly 63% market-implied probability of a September Fed increase are limiting demand for non-yielding metals. Steel European stainless-steel producers may gain market share as tighter import restrictions and the gradual rollout of the EU carbon border mechanism reduce overseas competition. Aperam expects imports to decline towards 17%-18% of regional consumption from 22%-23%, although it warned that the summer slowdown will depress third-quarter earnings. Tata Steel also reported lower production and deliveries at its Dutch operations, indicating that European activity remains uneven. Holcim upgraded its annual sales and recurring operating profit guidance after a strong second quarter. Rare Earth Metals The United States has authorised potential restrictions on exports of used batteries and electronic waste containing critical minerals, including tungsten and battery black mass. Retaining more material for domestic processing could reduce U.S. scrap availability for overseas buyers and strengthen competition for secondary feedstock. Mitsubishi Materials is separately investing to expand tungsten-recycling capacity at H.C. Starck Tungsten GmbH. Ionic Rare Earths has also launched a strategic review of its Makuutu heavy rare-earth project, considering partners, alternative structures and possible listings. Forex The euro is trading near a one-month high around $1.151 after Thursday’s steep decline in the dollar, improving the purchasing position of euro-based buyers of dollar-denominated metals. The greenback has recovered modestly in Friday’s Asian session, but uncertainty over Fed policy continues to cap it. Sterling is holding near $1.345 after the Bank of England left rates unchanged. The yen weakened to around 160.7 per dollar after the Bank of Japan held policy steady, reversing part of Thursday’s intervention-driven rally and keeping markets alert for further official action. Watch Today Eurozone flash inflation for July, preliminary French consumer prices and German unemployment data will shape expectations for European interest rates and the euro. Final U.S. consumer-sentiment figures are due later, while earnings from ExxonMobil and Chevron may influence energy markets and European industrial cost expectations.