Metals Daily

This Morning Base metals are mostly lower in early Friday trading. Zinc is the biggest loser, down 1.2% to $3,551/t, followed by tin (-1.1%), nickel (-0.9%), aluminium (-0.8%) and copper (-0.7%). Lead is almost unchanged. Macro & Geopolitics Market confidence has weakened after renewed US-Iran attacks disrupted shipping in the Gulf, keeping Brent crude oil close to $85 per barrel, about 12% higher than last week. Higher oil prices have raised concerns that inflation could stay high, even after recent US inflation data came in lower than expected. Investors now expect the US Federal Reserve could raise interest rates again before the end of the year. European stock markets are also under pressure following a sell-off in semiconductor shares. New US tariffs on some Brazilian goods will start on July 22, although pig iron, steel scrap, rare earths and energy products are excluded. Base Metals Copper prices are falling as weaker market sentiment outweighs signs of tight supply. Chinese demand remains strong, with import premiums at their highest level since May 2025, while LME warehouse stocks continue to tighten. Nickel has given back most of Thursday's gains as investors focus on the weaker market, despite concerns over sulphur supply to Indonesia. Aluminium is following the wider market lower, while zinc and tin are seeing the largest declines. Lead remains stable despite high stock levels. Precious Metals Gold has edged higher to around $3,981/oz but is still heading for its biggest weekly fall in six weeks. Rising oil prices, higher bond yields and expectations of higher US interest rates are reducing demand for gold as a safe-haven asset. Silver, platinum and palladium are also on track for weekly losses. Steel & Rare Earths The UK has taken full control of British Steel to protect domestic steel production. The move is not expected to have a major short-term impact on scrap demand. Switzerland and Indonesia have agreed to work more closely on metals and rare-earth supply chains, while China is expanding cooperation with Kazakhstan on mineral and energy projects. Forex & Watch Today The euro has weakened slightly against the US dollar, making imported metals a little more expensive for European buyers. Later today, markets will watch US housing, industrial production and consumer confidence data for clues on the economy and future interest rate decisions.