Continued trade optimism in US-China trade talks has improved risk-sentiment across global commodities markets and prompted upward movement in prices, however a stronger US dollar index has also provided headwinds to consistent price rallies.
Copper’s three-month price improved over the morning, trading around $6,450 per tonne, while both tin and zinc futures consolidated near Monday’s closing prices.
The tightness in copper’s forward spreads remains in place, while total stocks are at their lowest since 2005 at just over 26,000 tonnes on-warrant. The metal’s cash/three-month spread was recently in a backwardation of $53 per tonne.
Volumes traded over the morning were moderate, with copper’s 9,215 lots leading the complex as of 10:29am London time, while nickel’s 4,306 lots followed second.
“One metal that is standing out today on the LME is...