Metals Daily

This Morning At the 07:45 CET snapshot, base metals were mixed against Tuesday’s official closes. Nickel led the advances, gaining 0.7% to $17,120 per tonne, followed by zinc, up 0.6% at $3,694. Aluminium added 0.2% to $3,231 and copper edged 0.1% higher to $14,075.50. Lead was the weakest metal, falling 1.3% to $1,828, while tin declined 0.7% to $55,300. Macro & Geopolitics Lower energy prices and resilient equities set a broadly constructive tone for European trading. Brent slipped below $79 a barrel as mediators reported progress towards ending the U.S.-Iran conflict and restoring more traffic through the Strait of Hormuz. The retreat eased inflation pressure, pulled bond yields lower and reduced the implied probability of a September Federal Reserve rate hike to about 57%. European equity futures pointed higher after record closes on Wall Street. Trade risks remain relevant, however, with the U.S. Commerce Department seeking comments on applying 25% metals tariffs to 14 additional product groups, including cables, welding-machine parts, trailers and filled steel containers. Base Metals Copper remains supported by a regionalised inventory squeeze. Total LME stocks have fallen almost 40% since the end of May to 238,350 tonnes, while available inventory was reported at only 94,200 tonnes and the cash-to-three-month spread moved into backwardation of more than $100 per tonne. More than 200,000 tonnes entered the United States during July ahead of potential tariffs. Separately, Codelco suspended expansion work at El Teniente’s Andes Norte project after identifying emerging seismic risks associated with the mine’s depth. High prices are nevertheless beginning to weigh on Chinese demand. Aluminium and zinc retained modest gains, while uncertainty over Indonesian mining quotas remains a constraint on nickel sentiment. Precious Metals Bullion extended its advance as falling oil prices reduced inflation concerns and the dollar remained subdued. Gold rose 1.4% to around $4,134 an ounce, while silver gained 2% to $60.70. Platinum advanced 1% to roughly $1,751 after reaching its highest level since mid-June, and palladium added 0.5% to $1,360. U.S. employment releases now represent the main test for expectations around September monetary policy. Steel European steel-sector results presented a mixed picture. Voestalpine’s quarterly EBITDA rose to €495 million, slightly exceeding expectations, as its railway and aerospace operations performed strongly; its full-year EBITDA forecast remains €1.60 billion to €1.85 billion. Kloeckner generated adjusted EBITDA of €63 million but now expects a slight decline in 2026 shipments because of the difficult macroeconomic environment. Higher average prices should still support a modest increase in full-year sales volume, while its quarterly net loss reached €268 million following a Becker Group impairment. Rare Earth Metals Australian rare-earth developers returned to equity markets for project funding. Ionic Rare Earths completed an A$8 million placement through the issue of 30.8 million shares at A$0.26 each. Heavy Rare Earths separately announced a capital raising of up to A$2.03 million at A$0.028 per share. The transactions provide additional funding for corporate and project activities but do not represent immediate additions to physical supply for European buyers. Forex The euro held near $1.1537, just below its recent six-week high, as lower U.S. yields kept the broader dollar subdued. The relatively firm single currency improves purchasing power for euro-area buyers of dollar-denominated metals, partly cushioning the impact of elevated copper and zinc prices. Dollar-yen eased to around 157.63, although intervention risk remains high following last week’s coordinated U.S.-Japanese yen purchases. Further shifts in Federal Reserve expectations will remain a key driver for the euro-dollar cross. Watch Today July services and composite PMI readings are due from France, Germany, the euro area and the UK, followed by euro-area producer-price data for June. U.S. ADP employment and ISM services figures could alter rate expectations later in the session. European metals traders will also assess results from Glencore, Siemens Energy and Infineon.