London metals fell on Wednesday, and logged a monthly decline, as a stronger dollar eclipsed optimism over improving U.S.-China trade ties, with investors eyeing the upcoming U.S. economic data for clues into the Federal Reserve’s policy direction.
Benchmark copper on the London Metal Exchange (LME) fell 1.0% to $9,350 a metric ton as of 0701 GMT, losing 3.7% from closing price of $9,710 a ton on 31 March.
The U.S. dollar index rose 0.1% to 99.23, making dollar-priced commodities more expensive for buyers using other currencies.
Investors are awaiting the release of the U.S. Personal Consumption Expenditures (PCE) data this week, a closely watched inflation gauge that could impact Fed policy and metal prices.
U.S. President Donald Trump signed a pair of orders to reduce the impact of his auto tariffs, following Treasury Secretary Bessent’s remark that some key U.S. trading partners have presented promising proposals to avoid tariffs.
Bessent also noted that China’s recent exemption of select U.S. products from retaliatory tariffs showed a willingness to de-escalate.
“The trade war tensions appear to have stabilised this week without major new developments. Meanwhile, there’s some optimism about a potential de-escalation between the U.S. and China. Our attention has now shifted toward U.S. economic data,” a trader said.
In other London metals, aluminium fell 0.6% to $2,452 a ton, zinc lost 0.4% to $2,640, lead eased 0.3% to $1,972, tin dipped 0.3% to $31,815 and nickel rose 0.1% to $15,565 a ton.
The most-traded copper contract on the Shanghai Futures Exchange (SHFE) declined 0.5% to 77,220 yuan ($10,627.58) per ton.
Shanghai copper prices were supported by a massive drop in inventories (CU-STX-SGH) in warehouses monitored by the SHFE, which dropped 32% week-on-week to 116,753 tons as of April 25.
SHFE aluminium lost 0.1% to 19,910 yuan a ton, zinc slid 0.4% to 22,400 yuan, lead fell 0.6% to 16,840 yuan, nickel lost 0.6% to 123,720 yuan and tin dipped 0.4% to 260,300 yuan.
Source: Reuters
