Metals Update

All eyes were on China this weekend, as the focus momentarily shifted from the US elections to China’s Ministry of Finance briefing on Saturday. Markets eagerly awaited the next stage of stimulus, with high hopes for fiscal measures aimed at boosting economic activity. While the outlook was broadly positive with new measures announced to support the property sector, the absence of a concrete figure for immediate fiscal stimulus fell short of market expectations.

In response, LME base metal three-month prices saw declines across the board in Monday morning trading. Zinc recording the largest loss at time of writing, falling 3.46% to $3,045. Lead and Tin also dropped over 2% with Lead down to $2,046, while Aluminium, Copper and Nickel all fell by over 1.5%.

Turning to the spreads, last week we saw Index Nov-Jan lending rolls across the LME complex. Additionally, risk premia strategies saw lending in Copper and Aluminium for Dec24-Dec25.

As we move forward, the market remains vigilant for further developments from China that could shape the next phase of global metals demand.

By Rachael Cotgreave, Broker, Derivatives, SSY Dubai