Daily Metals

THIS MORNING The supplied metal-price indications are sharply divided from Wednesday’s official closes. Tin shows the largest premium at 3.2%, followed by zinc at 1.3%, copper at 1.2% and aluminium at 0.4%. Lead is 3.8% below its official close, while nickel is down 3.6%. These indications are from October 9, 2026, rather than Thursday, October 22, and should therefore be treated as reference points, not current market moves. MACRO & GEOPOLITICS European markets are heading for a weaker opening as high oil prices, Middle East tensions and pressure on French government bonds outweigh support from strong U.S. technology earnings. Brent crude traded near $110 a barrel after further Houthi attacks in Saudi Arabia prompted the United States to order some diplomats and family members to leave the country. France’s 10-year bond yield remains above 5%, while Moody’s is due to review the country’s Aa3 rating on Friday, October 23. Markets expect the U.S. Federal Reserve to leave rates unchanged at its October 27–28 meeting, although a December increase remains strongly priced. These risks could keep financing, energy and transport costs elevated for European metal businesses. BASE METALS Copper fell 0.4% to about $14,294 a tonne in early trade as fresh deliveries into London Metal Exchange warehouses eased immediate supply concerns. LME stocks have risen for three consecutive sessions, with the latest inflows spread across the Netherlands, South Korea, the United States and other locations. Even so, record premiums from Codelco in Europe and Aurubis indicate that physical metal remains tight in some regions outside the United States. Aluminium, zinc and lead each lost roughly 0.6%–0.7%, nickel fell 1.0% and tin dropped 1.3%. Nickel gained on the Shanghai Futures Exchange on unconfirmed reports that Chinese producers operating in Indonesia may cut output. A strike at Teck Resources’ Highland Valley Copper operation could begin on Saturday, October 24, adding a potential source of copper supply disruption. PRECIOUS METALS Gold dropped 1.1% to about $4,095 an ounce, its lowest level since October 14, as rising oil prices strengthened expectations that interest rates will remain higher for longer. Silver fell 2.6% to $56.44, while platinum lost 2.1% and palladium declined 2.6%. The broader sell-off in precious metals suggests that rate concerns are currently outweighing safe-haven demand linked to Middle East tensions. Next week’s Federal Reserve meeting and upcoming U.S. inflation data remain the main focus. STEEL Canada and Ontario announced a C$9 billion support package for industries affected by U.S. tariffs. More than C$5 billion is intended for steelmakers to modernise equipment, expand production and develop sales outside the United States. The package also includes C$2.5 billion to help automakers increase electric-vehicle production and C$1 billion for road links to Ontario’s Ring of Fire region. Canada said it would strengthen enforcement against foreign steel dumping. The measures could improve the competitiveness of Canadian mills and increase government-backed investment in processing capacity. For European traders, they also signal that state support and trade barriers are becoming more important in international steel flows, with potential implications for regional trade patterns. FOREX The euro was little changed near $1.123 despite rising French borrowing costs and continued political unrest. The dollar index eased to around 102.2, providing limited support to dollar-priced metals for euro-based buyers, although stronger U.S. rate expectations could quickly reverse that move. Sterling remains supported by expectations of a Bank of England rate increase in November after U.K. inflation reached 3.5% in September. The yen held near 158.13 per dollar, while the South Korean won was little changed after the Bank of Korea kept its policy rate at 3.00%. WATCH TODAY France’s October business-climate readings and the European Union’s preliminary consumer-confidence figure may influence the euro and European risk appetite. U.K. business optimism and U.S. weekly jobless claims are also due. Earnings from Barclays, Lockheed Martin, Dow and Blackstone could provide signals on industrial demand, investment and the wider economic outlook.