LIVE FUTURES REPORT 11/09: Downward pressure mounts for LME base metals; zinc, lead prices fall 3%

The prices of base metals on the London Metal Exchange were mostly lower at the close of trading on Tuesday September 11, pressured by China’s retaliatory pledge of approximately $7 billion of sanctions against the US amid an escalating trade rift.

Falling 2.4% over the afternoon, three-month aluminium prices fell to an intraday low of $2,044 per tonne after making an approach back toward $2,100 per tonne at Monday’s close.  While market participants await a resolution on sanctions against Russian aluminium producer Rusal, a sizeable drawdown in LME inventory – total on-warrant material remains at a 10-year low – and supply-side disruptions at key alumina refineries are keeping aluminium prices firm.  Elsewhere, nickel’s three-month price traded at its lowest point in nine months over the afternoon, hitting a low of $12,165 per tonne.   "People have become more realistic about the nickel price. The global economy is doing very well, but the outlook might not be as positive, with so many different signals around the world. That’s the reason we see three-month price the way it is," a European...

Published

Hassan Butt

September 11, 2018

18:00 GMT

London