Base metals prices mixed but generally weak; US Fed minutes show hawkish stance

Base metals prices on the LME were down across the board on the morning of Thursday January 6, while those on the SHFE were mixed, with traders concerned about the more hawkish stance of the US Federal Reserve and the growing impact of the Omicron variant of Covid-19.

US Federal Open Market Committee (FOMC) minutes reveal more hawkish tone than expected. Tighter monetary policy and economic fallout from Omicron variant bode ill for risk-on sentiment. Base metals Three-month prices on the London Metal Exchange were down across the board by an average of 0.7%, led by a 1.7% fall in nickel to $20,345 per tonne. The rest were down by between 0.3% - for aluminium, lead and tin - and 0.9% for copper at $9,600 per tonne. Zinc was down by 0.7%. See the table below for more details. For the most part, prices remain either in high ground or mid ground, with aluminium the one still heading higher. The most-traded February base metals contracts on the Shanghai...

Published

William Adams

January 06, 2022

09:20 GMT

London