On Wednesday, the London metals market experienced limited fluctuations as indications emerged that trade tensions between the U.S. and China might be easing. Investors are keenly awaiting upcoming U.S. economic data, which could significantly impact the Federal Reserve’s monetary policy decisions. As of 0105 GMT, the benchmark price for copper on the London Metal Exchange decreased by 0.4%, settling at $9,403 per metric ton.
U.S. Economic Data in Focus
Key economic indicators, including the U.S. initial jobless claims and Personal Consumption Expenditures data, are set to be released this week. These figures have the potential to influence metal prices due to their impact on the Fed’s interest rate strategies and overall economic outlook.
- Copper: Down 0.4% to $9,403/ton
- Aluminium: Down 0.1% to $2,462/ton
- Zinc: Up 0.1% to $2,653/ton
- Lead: Down 0.1% to $1,975/ton
- Tin: Unchanged at $31,919/ton
- Nickel: Up 0.1% to $15,570/ton
Positive Signals from Trade Relations
Recently, U.S. President Donald Trump signed two executive orders aimed at mitigating the effects of auto tariffs. This move follows comments from Treasury Secretary Bessent, who noted that key trading partners of the U.S. have brought forth promising proposals to avoid tariffs. Additionally, Bessent highlighted that China’s recent decision to exempt select U.S. products from retaliatory tariffs signals a willingness to reduce trade friction.
A trader commented, "This week has seen a stabilization in trade war tensions, with no significant developments. Optimism is growing about the possibility of easing relations between the U.S. and China. Our focus has shifted to the forthcoming U.S. economic reports."
Shanghai Futures Exchange Insights
In the Shanghai Futures Exchange, the most active copper contract remained stable at 77,570 yuan per ton. Notably, copper prices in Shanghai are benefiting from a substantial 32% decline in inventories, which dropped to 116,753 tons in warehouses monitored by the exchange.
- Aluminium on SHFE: Increased by 0.4% to 19,995 yuan/ton
- Zinc: Unchanged at 22,540 yuan
- Lead: Decreased by 0.3% to 16,895 yuan
- Nickel: Fell by 0.3% to 124,130 yuan
- Tin: Stable at 261,160 yuan
As investors navigate this complex landscape, the interplay between economic data and trade relations will likely continue to shape the dynamics of the metals market.
