Daily metals

This Morning Base metals opened lower across the board on Wednesday, September 9. Lead was the weakest, down 1.0% from Tuesday’s official close, while aluminium and zinc each fell about 0.5%. Copper eased 0.4%, nickel lost 0.3% and tin slipped by less than 0.1%. Macro & Geopolitics Oil remained a major source of market pressure, with Brent crude approaching $100 a barrel after further attacks involving Iran, U.S. forces and Iranian-backed Houthi militants. Higher fuel and shipping costs could add to European inflation and squeeze metal processors’ margins. The European Central Bank was widely expected to raise rates by a quarter point on Thursday, while markets remained divided over next week’s Federal Reserve decision. China’s producer and consumer inflation accelerated in August, although domestic industrial demand remained subdued. Meanwhile, Brussels was seeking early action from Beijing to address the EU’s widening trade deficit and restrictions affecting critical mineral supplies. Base Metals Copper pulled back from Tuesday’s record high of $14,779 a tonne as traders took profits, but tight availability outside the United States continued to support the market. COMEX stocks reached about 723,000 tonnes after heavy imports linked to the prospect of U.S. tariffs. Analysts warned that the rally was increasingly policy-driven and could reverse sharply if tariffs were delayed or ruled out. Aluminium also softened, although China’s smelters were operating near their effective limit, leaving little room for additional domestic output. Chinese producers were instead expanding abroad. Nickel led the overnight LME losses, while zinc, lead and tin also eased. Precious Metals Spot gold rose about 1% to $4,394.89 an ounce as a softer dollar and escalating Middle East risks supported demand for the safe-haven metal. Silver gained 0.9% and platinum rose 1.1%, while palladium edged lower. The platinum outlook nevertheless weakened after the World Platinum Investment Council forecast a 265,000-ounce surplus for 2026, reversing its earlier deficit estimate. Investment outflows, weaker jewellery demand and an expected 18% fall in total demand were the main reasons for the change. Steel India’s sponge iron prices reached a two-year high as imported coal, freight and insurance became more expensive, while domestic coal supplies remained tight. These higher costs could support prices for material used by secondary steelmakers. In Europe, supply risk increased after a Russian missile strike forced Metinvest to halt production at its Kamet Steel plant in Ukraine. The site is one of only two Ukrainian steelworks still controlled by the company, making the shutdown significant for regional supply chains. Rare Earth Metals Belgian chemicals group Solvay was discussing a possible rare earth partnership with One Investment Management. Solvay’s La Rochelle plant in France is one of the few facilities outside China able to separate all 17 rare earth elements, giving any investment strategic value for European buyers. However, financing remained a wider problem: 23 EU-backed critical mineral projects warned that funding shortages could delay or jeopardize some developments. The EU said it had created a framework to mobilise €1.7 billion, but project operators were calling for faster access to funding. Forex The euro edged up to around $1.1634 ahead of Thursday’s expected ECB rate increase. A firmer euro can reduce the local-currency cost of dollar-priced metals for European buyers, although higher borrowing costs could weaken manufacturing demand. The dollar remained subdued, also supporting gold and reducing some pressure on base metals. The yen strengthened to around 153.3 per dollar, close to a seven-month high, as traders prepared for faster Bank of Japan tightening. Further unwinding of yen-funded trades could increase volatility across commodities and equities.