Base metals mixed amid dollar volatility and tariff uncertainty
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Base metal prices showed mixed performance on Tuesday as traders digested conflicting signals about U.S. trade tariffs. President-elect Donald Trump denied reports of a scaled-back tariff strategy, creating caution in the market.
Market Highlights
Copper on the London Metal Exchange (LME) rose 0.2% to $9,022 per metric ton as of 0709 GMT
The dollar index (DXY) stood at 108.1, down from its recent two-year high of 109.25, providing mixed signals for dollar-priced commodities
SHFE February copper climbed 1.1% to 74,470 yuan ($10,163.64) by the end of Asian afternoon trade
Dollar Dynamics and Metal Prices
The dollar initially dropped on reports of selective U.S. tariffs targeting critical sectors but recovered after Trump denied the claims. The dollar’s strength continues to influence base metals, as a stronger greenback makes dollar-priced commodities more expensive for buyers using other currencies
Performance of Key Metals
LME Metals:
Aluminium rose 0.4% to $2,499 per ton
Nickel edged up 0.1% to $15,200
Zinc fell 0.3% to $2,893
Tin gained 0.4% to $29,400
Lead slipped 0.4% to $1,937
SHFE Metals:
Aluminium gained 0.1% to 19,680 yuan per ton
Nickel rose 0.2% to 122,770 yuan
Tin climbed 0.6% to 248,320 yuan
Zinc fell 0.4% to 24,395 yuan
Lead remained relatively stable at 16,730 yuan
Market Sentiment and Outlook
The focus remains on the dollar's strength, which has become a key driver for metal prices. A trader noted, “Nowadays, metals tend to move in unison,” reflecting the interconnected influence of global markets and currency movements.
Conclusion
Base metals are navigating a complex environment shaped by currency volatility and geopolitical uncertainty. Traders will continue to monitor U.S. policy signals and macroeconomic data for clearer direction.
Market Highlights
Copper on the London Metal Exchange (LME) rose 0.2% to $9,022 per metric ton as of 0709 GMT
The dollar index (DXY) stood at 108.1, down from its recent two-year high of 109.25, providing mixed signals for dollar-priced commodities
SHFE February copper climbed 1.1% to 74,470 yuan ($10,163.64) by the end of Asian afternoon trade
Dollar Dynamics and Metal Prices
The dollar initially dropped on reports of selective U.S. tariffs targeting critical sectors but recovered after Trump denied the claims. The dollar’s strength continues to influence base metals, as a stronger greenback makes dollar-priced commodities more expensive for buyers using other currencies
Performance of Key Metals
LME Metals:
Aluminium rose 0.4% to $2,499 per ton
Nickel edged up 0.1% to $15,200
Zinc fell 0.3% to $2,893
Tin gained 0.4% to $29,400
Lead slipped 0.4% to $1,937
SHFE Metals:
Aluminium gained 0.1% to 19,680 yuan per ton
Nickel rose 0.2% to 122,770 yuan
Tin climbed 0.6% to 248,320 yuan
Zinc fell 0.4% to 24,395 yuan
Lead remained relatively stable at 16,730 yuan
Market Sentiment and Outlook
The focus remains on the dollar's strength, which has become a key driver for metal prices. A trader noted, “Nowadays, metals tend to move in unison,” reflecting the interconnected influence of global markets and currency movements.
Conclusion
Base metals are navigating a complex environment shaped by currency volatility and geopolitical uncertainty. Traders will continue to monitor U.S. policy signals and macroeconomic data for clearer direction.