Metals Daily

This Morning Base metals mostly moved higher at the start of Thursday’s business day. Tin led the gains at 1.5% above Wednesday’s official close, followed by aluminium at 0.9%, zinc at 0.6% and lead at 0.6%. Copper was virtually unchanged, up less than 0.1%, while nickel was the only faller, down 0.8%. The pattern points to broad but selective buying rather than a uniform rise across the complex. Macro & Geopolitics Markets are taking a more positive view of the US midterm result, expecting divided government to limit abrupt policy changes. Hopes that political pressure will encourage negotiations to end the Iran war pushed Brent crude below $100 a barrel, easing concerns over energy costs and inflation. However, President Donald Trump has defended the conflict, so the risk of renewed escalation remains. Lower oil prices have pulled down government bond yields and weakened the dollar. In Europe, high inflation is still keeping central banks under pressure, with the Bank of England expected to raise interest rates on Thursday. Base Metals Industrial metals benefited from stronger global markets, a softer dollar and the sharp decline in oil prices. Copper also remains supported by limited availability outside the United States. China’s Yangshan copper premium rose to $205 a tonne, its highest in 12 years, signalling strong demand for imported metal. The main risk is that tighter US oversight delays some data-centre projects, reducing expected copper use. Aluminium, lead, tin and zinc all gained in morning trading. Nickel was lower than Wednesday’s official close despite continued interest from battery and stainless-steel buyers. Precious Metals Gold rose nearly 2% to around $4,135 an ounce, reaching a two-week high after gaining about 3.4% on Wednesday. Silver advanced to roughly $53.12, platinum reached about $1,528 and palladium climbed above $1,030. A weaker dollar and falling US bond yields supported the sector. Physical investment demand has been less convincing, however: Perth Mint’s October gold sales fell 30% from September, while silver sales dropped 36%. Steel ArcelorMittal reported third-quarter earnings above expectations, helped by higher European steel shipments. The group has brought all its European blast furnaces back into operation and expects second-half shipments to exceed first-half levels. This is a constructive signal for regional raw-material and scrap demand, although actual buying will depend on mill margins and finished-steel orders. The company’s positive outlook contrasts with continuing uncertainty around Italy’s Ilva steelworks, where a court-ordered furnace shutdown has complicated the search for a buyer. Rare Earth Metals Australia’s Viridis Mining signed a binding agreement to supply mixed rare-earth carbonate from its Colossus project in Brazil to Belgian chemicals group Solvay. Production is targeted to begin in 2028, with the contract running through December 2034. Minimum volumes cover nearly 64% of forecast output for key magnetic elements including neodymium, praseodymium, dysprosium and terbium. The deal supports efforts to diversify rare-earth supply chains outside China, although commercial production remains several years away. Forex The euro traded close to a one-month high at around $1.127 against the dollar. Lower US bond yields, falling oil prices and expectations of political gridlock in Washington have weighed on the American currency. A stronger euro reduces the local cost of dollar-priced metals for European buyers, although it can also place pressure on exporters receiving dollar revenue. Sterling remained near a seven-week high before the Bank of England decision, where markets expect the first UK interest-rate increase in three years. Watch Today The Bank of England’s rate decision is the main scheduled event, with an increase widely expected. October services and composite PMI readings for Germany, France and the eurozone may provide clues on regional metal demand. Traders will also watch US initial jobless claims, while European Central Bank President Christine Lagarde is due to speak in Milan.