MORNING VIEW: Base metals with strong fundamentals hold up – will the usual dip-buying support the others?

Base metals prices have generally been under pressure in recent days while broad-based risk-off has weighed on the market, but the metals were looking more mixed on the morning of Tuesday September 21, suggesting consolidation after Monday’s average loss of 1.6% across the London Metal Exchange base metals.

The risk-off sentiment seems to be tied in with concerns about whether Chinese property giant Evergrande’s massive debt problems will trigger contagion, especially across China’s construction industry. Holidays across China, Japan and South Korea in recent days have reduced liquidity in the market – heightening price volatility. Base metals Three-month base metals prices on the LME were either little changed or up this morning, with the complex up by an average of 0.3%, led by a 0.6% rise in copper to $9,061 per tonne. During the recent bout of weakness aluminium and tin have been the metals that have held up the best – the two...


William Adams

September 21, 2021

07:11 GMT