Commodities open with mixed prices for base, precious metals as sentiments bullish on China’s demand
Aderemi Ojekunle is a Businessamlive Reporter.
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Base metal prices on the London Metal Exchange (LME) and Shanghai Futures Exchange were mixed on Monday morning, October 12, but investors are optimistic, especially in the aluminium market since China, the world’s largest consumer resumed operations after its Golden Week holiday.
China’s markets appear strengthened due to its steady economic recovery and by the fact it appears to have Covid-19 under control, unlike Europe and the US affected by several cases of a pandemic relapse.
Base metal prices on the London Metal Exchange were mixed on Monday morning, with copper, lead and tin showing losses of between 0.2 per cent and 0.3 per cent. Copper was down 0.2 per cent at $6,760 per tonne, while aluminium, nickel and zinc were up by an average of 0.4 per cent.
On the other hand, the most-traded base metals contracts on the Shanghai Futures Exchange were mixed, with November lead and December tin, down by one per cent and 0.2 per cent respectively, while the rest of the metals were up by an average of 0.6 per cent, led by a 1.4 per cent rise in November nickel, while November copper was up by 0.1 per cent at 51,470 yuan ($7,560) per tonne.
The precious metals complex was also mixed as spot silver led on the upside with a 1.1 per cent gain to $25.39 per oz, followed by spot palladium, up by 0.8 per cent at $2,455 per oz, while spot gold was up by 0.1 per cent at $1,929.28 per oz, and platinum slipped 0.2 per cent at $887.50 per oz.
However, base metals are rebounding, led by aluminium, which broke higher on Friday to set a new 2020 high of $1,855.50 per tonne. Tin and copper are also back in high ground, while the others are on a steady rise led by zinc, which is now mid-range.
The strength suggests dip-buying is still a powerful force, with the market focused on China’s recovery gaining momentum. The potential for more stimulus in the US remain positive as demand rises and infrastructure projects get underway.