LIVE FUTURES REPORT 07/03: ‘Risk of trade war’ sends LME base metals lower; lead price hit hardest

Base metals prices on the London Metal Exchange slumped by the 5pm close on Wednesday March 7, with uncertainty stemming from the latest developments over the US’ Section 232 probe leading to a sell-off.

Aluminium was the most traded metal of the complex today, with more than 20,000 lots changing hands by the close. Its price fell 1.6% - it concluded below support at $2,100 per tonne. The cash/three-month spread continues to widen, recently reaching at $19.50 per tonne contango from $20 per tonne backwardation this time last week. “There is very little interest in setting a meaningful price direction and traders are mostly on the sidelines, waiting for further price developments,” Metal Bulletin analyst Andy Farida said. Gary Cohn, US President Donald Trump's leading economic adviser, has stepped down from the role, sending a wave of uncertainty crashing across markets. “His [Cohn’s] free-trade views did not sit well with the US president's tough metal import tariffs....


Alice Mason

March 07, 2018

17:25 GMT