LIVE FUTURES REPORT 03/10: Metals track higher on LME; zinc sets fresh 10-year peak

Base metals gradually moved higher during European pre-market trading on Tuesday October 3, with trend-setter zinc again notching up its highest price for ten years, as the robust dollar gave back some Asian-hours gains, traders said.

London Metal Exchange zinc prices continued to derive support from tight supply and the persistently large backwardations in spreads, peaking at $3,267.50 per tonne.

Otherwise, with Chinese markets, including the Shanghai Futures Exchange, closed for the country’s National Golden Week holiday (October 2-6), trading was mostly routine.

“The base metals are a mixture of strength, weakness and consolidation,” senior analyst at Metal Bulletin William Adams said.

However, profit-taking is being absorbed, with the technical tightness in some metals discouraging significant short-selling.

“We are now moving further into the post-summer period when business activity should pick up, so we wait to see if buying picks up again – for now the stronger dollar is unlikely to be helping,” Adams added.

The dollar, already seeing support from expectations of a US interest rate rise in December, was underpinned by the release of strong US economic data on Monday – notably the ISM manufacturing purchasing managers’ index (PMI) for September.

Zinc probes higher again 

  • The three-month zinc price was trading recently at $3,266 per tonne, up $30 from the Monday open-outcry close. There was a further decline in warehouse stocks, with a net 1,025-tonne fall to 252,225 tonnes seen – cancelled warrants held at 139,025 tonnes. 
  • The benchmark cash/threes spread was little-changed at $35/38 backwardation.

Copper back above $6,500 per tonne, others match trend 

  • Copper, initially drifting in Asia, reversed direction and moved back above the $6,500 per tonne level with the three-month price at $6,517, up $24 from Monday. Business was light, however, with just some 2,880 lots trading on Select by mid-morning. 
  • Warehouse stocks were up 6,550 tonnes at 302,050 tonnes, with 6,675 tonnes warranted in Gwangyang. 
  • The three-month aluminium price traded at $2,124 per tonne, up $23, with inventories falling 3,550 tonnes to 1,225,475 tonnes. 
  • The three-month lead price took its cue from zinc’s strength, and rose to $2,527 per tonne, up $9. Stocks were down 575 tonnes at 156,900 tonnes. The cash/threes spread was around level. 
  • The three-month nickel price gained $305 to $10,695 per tonne, with stocks declining 1,782 tonnes to 382,734 tonnes. 
  • The three-month tin price was just $25 higher at $20,700 – inventories fell 25 tonnes to 2,045 tonnes.

Currency moves and data releases 

  • The dollar index was steady at 93.65, having earlier hit 93.92, which was the highest since August 17. 
  • In other commodities, the Brent crude oil spot price was seven cents higher at $56.09 per barrel. 
  • The economic agenda is lighter today – Europe’s August producer price index rose 0.3% against a forecast 0.1% increase. 
  • Later, US Federal Open Market Committee member Jerome Powell is speaking in Washington DC, USA.
What to read next
Information came to light that mill buying offers had been adjusted for July following Fastmarkets’ settlement of these prices on that date, leading to an incorrect published assessment for the following grades: MB-STE-0789 Steel scrap No1 heavy melting, consumer buying price, fob Montreal, Canadian $/net ton was previously published at C$245 ($179.41) per net ton, a C$10 […]
Mexico’s production and consumption of long steel fell year-on-year in May due to weakness in the country's construction sector, but posted a month on month gain, according to the latest data from the Mexican steel chamber, CANACERO.
This price is a part of the Fastmarkets scrap package. For more information on our North America Ferrous Scrap methodology and specifications please click here. To get in touch about access to this price assessment, please contact customer.success@fastmarkets.com.
Fastmarkets has corrected the rationale for its MB-CO-0021 cobalt hydroxide payable indicator, min 30% Co, cif China, % payable of Fastmarkets’ standard-grade cobalt price (low-end), which was published incorrectly on Wednesday July 2 due to a reporter error.
The prices are: The changes were made in order to ensure that the liquidity and price volatility in these markets is adequately captured. The changes were welcomed by market participants seeking more granular coverage and increased transparency. In the UK, the decline of domestic steelmaking means the scrap market is dominated by exports. Exporters told Fastmarkets that […]
Tariff concerns and opaque import regulations dominated discussions among aluminium and copper scrap market participants at the 2025 ASEAN Recycling Metals International Conference held in Thailand on June 18-20.