INDUSTRIAL METALS UPDATE

Advisory Bazaar Info Services

🔹 Copper Under Pressure:

Industrial metals declined as the US dollar strengthened after inflation data failed to significantly change expectations regarding the Federal Reserve’s interest-rate outlook.

🔸 Copper:

* LME 3-Month Copper fell 0.32% to $14,086.5/MT.

* SHFE Copper declined 0.55% to 107,580 yuan/MT.

* LME copper inventories declined amid uncertainty over potential US tariffs on refined copper imports.

* China’s Yangshan Copper Premium fell to a four-week low, indicating weaker import demand.

🔸 US Dollar:

The US Dollar Index rose 0.05% to 100 and gained around 0.4% on a weekly basis. A stronger dollar increases the cost of dollar-denominated commodities and weighs on metal prices.

🔸 Aluminium:

Aluminium prices fell by nearly 1% as prospects of improved supply from the Middle East weighed on the market, ending a seven-session winning streak.

🔸 Other Metals:

* LME Zinc: -0.64%

* LME Lead: -0.24%

* LME Nickel: -0.93%

* LME Tin: -0.69%

➡️ Outlook: Industrial metals may remain under pressure due to a stronger US dollar, weaker Chinese import demand and uncertainty over potential US tariffs. However, declining copper inventories may provide some downside support.