Metals Daily

This Morning At the start of Tuesday’s business day, the latest indicative trade prices supplied from Friday show a mixed position against Monday’s official closes. Zinc is the strongest mover, up 1.3% at $3,805 a tonne, while lead is down 1.3% at $1,820. Copper and tin are both 0.6% lower at $14,529 and $52,900 respectively. Nickel is 0.2% higher at $15,460, and aluminium is up 0.1% at $3,055. Macro & Geopolitics Risk appetite weakened overnight as heavy losses in Asian technology shares spread into wider markets. The continuing Middle East conflict remains an inflation concern, with Brent crude near $106 a barrel and government borrowing costs still close to multi-decade highs. Investors moved back into US government bonds for safety, although high energy prices and heavy state borrowing may limit any lasting recovery. Attention is turning to Wednesday’s US consumer inflation report, which will guide expectations for the Federal Reserve. Elevated energy costs and high interest rates remain obstacles to stronger industrial demand in Europe. Base Metals Copper was little changed early Tuesday as Chilean supply problems were balanced by a strong dollar. Codelco has partially suspended work at El Teniente following a deadly landslide, while a strike continues at Antofagasta’s Centinela mine. Aluminium slipped after touching an eight-month low on Monday, with expected production growth outside China contributing to forecasts of a substantial market surplus in 2027. Zinc weakened after fresh deliveries lifted LME warehouse stocks to their highest level since mid-2025. Lead was broadly steady, while nickel and tin recorded modest declines. Tight nearby copper availability continues to offer support, although the strong dollar is limiting gains. Precious Metals Gold edged 0.4% higher to around $4,186 an ounce as oil prices eased, although the strong dollar limited gains. Silver added 0.2%, platinum rose 0.7% and palladium firmed slightly. Wednesday’s US inflation figures remain the main short-term event: a stronger-than-expected reading could raise expectations of further Federal Reserve tightening and pressure precious metals, while softer data could support them. Steel The World Steel Association now expects global steel demand to contract by 0.1% in 2026, replacing its earlier forecast for slight growth. Demand in China is forecast to fall 2% as the property downturn continues, while consumption in the European Union and Britain is expected to decline 0.3%. The weaker European forecast reflects a slow and uneven construction recovery. Global steel demand is forecast to grow 1.7% in 2027, although that projection was reduced from 2.2%. Rare Earth Metals Malaysia’s king has bought a 2.25% stake in Southern Alliance Mining for S$6.1 million as the company expands into rare earths. Southern Alliance holds a 40% stake in MCRE Resources, which operates a rare-earth mining site in Perak, and is also planning to acquire a business linked to a project in Johor. The transaction does not change the company’s management or operations. Forex The euro remained weak near $1.117 against the dollar, which was close to an 18-month high as investors sought safer assets. The dollar is also benefiting from expectations that high energy costs may keep US interest rates elevated. For European scrap buyers, the softer euro increases the local cost of dollar-priced metals and can offset declines on the LME. The yen traded near 158.3 per dollar, with markets still alert to the possibility of intervention by Japanese authorities. Watch Today Germany’s final September inflation report is due this morning and could affect European interest-rate expectations. JPMorgan, Goldman Sachs, Citigroup and Wells Fargo report results later today, with markets watching for signs that high borrowing costs are affecting lending, dealmaking and funding costs.