Copper was the exception, however, with its prices weakening – albeit marginally.
The most-traded August copper contract price on the SHFE dipped to 51,590 yuan ($7,853) per tonne at 10.49am Shanghai time, down 40 yuan or 0.1% per tonne from Tuesday’s close.
“Copper prices remained under pressure… as news of retaliatory actions by countries on US tariffs continued to raise concerns that economic growth would be impacted,” ANZ Research said.
“Canada was the latest, with the government preparing new measures to stop the flood of steel imports from producers seeking to avoid US tariffs,” it added.
Last week, US president Donald Trump warned that the European Union could join China in facing import tariffs of 20%, with US commerce secretary Wilbur Ross issuing further notice that action on EU car imports would be taken by late July or August.
The ratcheting up in the United States’ trade spat with key allies had fueled de-risking and invoked a bout of selling across the base metals complex, while a firm dollar has also kept a cap on the sector.
Though it has retreated from recent highs, the dollar index remains in relatively high ground. The index stood at 94.64 as at 10.49am Shanghai time on Wednesday, this after hitting a high of 95.54 on June 21 – its highest since July last year.
Base metals prices
- The SHFE August aluminium contract price rose 120 yuan per tonne to 14,155 yuan per tonne
- The SHFE August lead contract price gained 175 yuan per tonne to 20,070 yuan per tonne.
- The SHFE August zinc contract price increased 120 yuan per tonne to 22,765 yuan per tonne.
- The SHFE September tin contract price moved up 50 yuan per tonne to 145,500 yuan per tonne.
- The SHFE September nickel contract price climbed 640 yuan per tonne to 115,000 yuan per tonne.
Currency moves and data releases
- The dollar index was down 0.03% at 94.64 as at 10.49am Shanghai time.
- In other commodities, the Brent crude oil spot price was down 0.16% to $76.5 per barrel as of 10.49am Shanghai time.
- In equities, the Shanghai Composite was down by 0.45% to 2,831.5 at the morning close.
- In US data on Tuesday, S&P/CS composite-20 house price index rose 6.6% year over year, below the forecast of a 6.9% increase.
- In data today, there is a host of US data including core and headline durable goods orders, goods trade balance, preliminary wholesale inventories, pending home sales and crude oil inventories.
- In addition, US Federal Open Market Committee (FOMC) member Randal Quarles is speaking and there is a European Central Bank (ECB) non-monetary policy meeting.
