Nonferrous metals prices experienced a decline in London on Tuesday, reversing gains from the previous session as investors and traders exercised caution ahead of key economic data releases in China and the United States. Three-month copper on the London Metal Exchange (LME) dropped by 0.2% to $8,634 per metric ton, while aluminium, nickel, and zinc also recorded decreases. LME lead and tin followed suit, easing by 0.2% and 0.6%, respectively.
The subdued economic growth outlook, coupled with lackluster manufacturing data and limited stimulus support from China, have exerted downward pressure on London metal prices. Market participants are closely monitoring the U.S. inflation data set to be released later in the day, anticipating potential impacts on the dollar and metals prices as fund activities respond to numerical signals.
China’s upcoming release of loan data, including total social financing figures, is expected to provide insights into future metals demand trends. Anticipated reductions in Chinese bank lending for February, following a previous record high, are attributed to seasonal factors influencing market dynamics.
In Shanghai, the most-traded May copper contract on the Shanghai Futures Exchange (SHFE) edged up by 0.1% to 69,650 yuan per ton, aligning with London’s overnight gains. SHFE aluminium and nickel also saw increases, while zinc advanced by 0.7%. Lead prices rose by 0.5%, with tin being the only metal to register a decline of 0.6%.
As market participants await further economic data releases and monitor global developments, fluctuations in base metals prices are expected to continue amid ongoing economic uncertainties and shifting market dynamics.