Lead prices on the London Metal Exchange fell by more than 5% at the close of trading on Wednesday July 11, topping broad complex losses amid mounting pressure from the ongoing US-China trade spat.
Fueled by threats of further tariffs equating to $200 billion worth of Chinese goods, base metals prices have taken a concerted retreat, with investor sentiment continuing to dwindle.
“I don’t think the market was pricing in another imposition of tariffs of that magnitude. The second wave of tariffs equating to $16 billion from the US on China was touted and known about. People didn’t anticipate this,” Geordie Wilkes, head of Research at Sucden Financial, told Metal Bulletin.
“I don’t necessarily think prices will stay down here, the recent decline is slightly overdone. It’s become evident that ongoing trade...