American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Business

Uncertainties persist in base metals market regarding US-China trade deal

by admin June 14, 2025
June 14, 2025
Uncertainties persist in base metals market regarding US-China trade deal

There is a considerable amount of uncertainty in the base metals market surrounding the implication of the trade deal between the US and China. 

Base metal prices reacted unevenly to the US-China tariff agreement. Aluminium prices initially increased, while nickel and copper prices declined.

At the time of writing, the three-month copper contract on the London Metal Exchange was at $9,574 per ton, down 1.3%. Nickel was up 0.2% at $15,136 a ton.

The agreement is beneficial for base metals as it mitigates the risk of renewed conflict escalation, according to Commerzbank AG.

On the other hand, tariffs, particularly those imposed on China, continue to be considerably higher than pre-Trump levels. 

This elevated tariff environment is expected to suppress demand within the metals market, which is of paramount importance, the German bank said in a report.

Aluminium prices

“Meanwhile, the rise in aluminium prices could be mainly due to supply concerns,” Thu Lan Nguyen, head of FX and commodity research at Commerzbank, said in the report.

LME inventories have been consistently decreasing since last spring. 

Simultaneously, whispers suggest significant market concentration, with a handful of companies reportedly holding substantial positions, enabling them to procure vast amounts of aluminum, Nguyen said.

She added: 

This could cause difficulties for counterparties given the low inventory levels and lead to a so-called ‘short squeeze’.

Past market trends, mirroring current conditions, have consistently resulted in significant price surges in the metal markets. A notable instance is the dramatic rise in nickel prices observed in 2022.

At the time of writing, the three-month aluminium contract on the London Metal Exchange was at $2,485 per ounce, down 1.5% from the previous close. 

Iron ore remains under pressure

Iron ore prices continued to face downward pressure, dropping below $95 per ton in Singapore on Friday. This decline occurred ahead of China’s industrial production figures release on Monday.

China’s iron ore imports in May were reported on Monday, showing a 4% year-on-year decrease to 98.1 million tons.

In the first five months of this year, an average of 97.3 million tons were imported. This signifies a decline of approximately 5% when compared to the same period last year.

Meanwhile, China’s steel production figures, based on high-frequency data, suggest a probable year-on-year decline in May.

“While the official figures will not be published until Monday, figures from the industry association point to a decline of 2%,” Nguyen said. 

China sales figures

Daily sales figures from the Chinese real estate market continue to show no expected improvement in steel demand from this sector in the near future.

Therefore, a significant decline in real estate sales is anticipated for May, a trend that has persisted into June, according to Commerzbank.

“Weak property sales are therefore likely to continue to weigh on construction starts and thus on steel demand,” Nguyen added in the report. 

In view of the ongoing difficulties in the Chinese property market, we continue to see only limited potential for recovery in iron ore prices.

The post Uncertainties persist in base metals market regarding US-China trade deal appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
Could the Air India Ahmedabad crash derail its turbulent revival?
next post
Archer Aviation stock tanks after raising capital: 3 reasons to buy the dip in ACHR

Related Posts

European pharma stocks fall on Wednesday ahead of...

April 2, 2025

Top analyst reveals the best AI chip stock...

January 18, 2025

How far will the FTSE 100 go in...

December 31, 2024

Top stocks to watch: Carnival, LUNR, Nike, FedEx,...

March 16, 2025

Here’s why SAP share price may crash to...

June 20, 2025

What is the future of Lucid Group and...

September 12, 2024

LVMH drops 8% on sales miss as geopolitics...

April 15, 2025

Indian markets open: Sensex reclaims 80K, Nifty nears...

April 23, 2025

This US bank stock could gain from Trump’s...

March 19, 2025

Baidu makes ‘Ernie Bot’ free from April 1...

February 13, 2025

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • From $824 to over $1,300: how soaring rents are consuming American paychecks

      July 27, 2025
    • India-UK sign historic free trade deal: here’s all you need to know

      July 24, 2025
    • Talen Energy surges 25% to ATH after strategic natural gas power plant acquisition

      July 20, 2025
    • US visa bans on Brazilian judges spark diplomatic rift, cloud economic ties

      July 20, 2025
    • Trump sues Murdoch and News Corp over Wall Street Journal’s Epstein report

      July 20, 2025

    Categories

    • Business (3,490)
    • Investing (2,665)
    • Latest News (2,023)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved