MARKET OVERVIEW - As Base Metals Rise with a Weaker Dollar, Trump's Tariff Threat Caps Gains

Forex - Base metal prices have largely risen due to the weakening of the dollar, although gains remained minimal as market participants awaited further clues about potential US tariff policies.

Three-month copper on the London Metal Exchange (LME) rose by 0.4% to $9,128.50 per tonne at 07:08 GMT, while the December copper contract on the Shanghai Futures Exchange (SHFE) fell by 0.1% to 74,340 yuan per tonne ($10,266.25).

Today's declining dollar index made metals cheaper. However, concerns about the physical metal demand being negatively impacted by customs duties policies from President-elect Donald Trump limited the price increases.

An analyst commented, "Markets are likely to remain stagnant in liquidity until the end of the year as they await news regarding potential tariffs on China from the Trump administration."

A trader mentioned that the market is expecting additional stimulus measures from China, but this has not been priced in.

On the LME, nickel traded at $16,035 per tonne, up 0.8%; zinc at $2,984.50 per tonne, down 0.1%; tin at $29,150 per tonne, up 0.4%; aluminum at $2,645.50 per tonne, up 0.1%; and lead at $2,012.50 per tonne, down 0.4%.

On the SHFE, nickel traded at 127,780 yuan per tonne, up 1.3%; zinc at 25,180 yuan per tonne, up 0.9%; lead at 16,875 yuan per tonne, up 0.1%; tin at 243,290 yuan per tonne, up 0.3%; and aluminum at 20,660 yuan per tonne, down 0.1%.

According to data from the International Lead and Zinc Study Group, the global lead market deficit increased from 16,200 tonnes in August to 32,400 tonnes in September, while the zinc market deficit decreased from 85,000 tonnes in August to 79,500 tonnes in September.