Base Metal Market Overview – November 6, 2024

Copper

- LME Copper: Closed at $9,733/mt, up 0.59%. Initially surged but showed fluctuations before closing near opening levels.

- SHFE Copper: The most-traded contract closed at 77,840 yuan/mt, up 0.52%. US election volatility and a weak dollar supported copper, but elevated prices dampened buying interest.

- Outlook: With the US Fed meeting and market uncertainty, copper may experience downward pressure in the short term.
 
 Aluminum

- LME Aluminum: Settled at $2,659/mt, up 1.45%.

- SHFE Aluminum: Closed at 21,100 yuan/mt, up 1.30%. Inventory declines, supported by tight alumina supply, bolstered aluminum prices.

- Outlook: With stable demand and low inventory levels, aluminum prices are expected to remain resilient in the short term.
 
 Lead

- LME Lead: Ended at $2,028.5/mt, down 0.42%.

- SHFE Lead: Closed at 16,670 yuan/mt, down 0.71%. Limited inventory decline and moderate consumer interest created a weak trend.

- Outlook: Lead prices are likely to continue range-bound movements, influenced by environmental policies and cautious market sentiment.
 
 Zinc

- LME Zinc: Closed at $3,110.5/mt, up 2.54%.

- SHFE Zinc: Closed at 25,240 yuan/mt, up 0.7%. Strong demand pushed prices higher, but downstream buyers showed resistance to elevated prices.

- Outlook: Zinc prices may remain at high levels, driven by anticipated interest rate cuts and broader economic conditions.
 
 Tin

- LME Tin: Closed at $32,305/mt, up 0.5%. The weakening US dollar helped boost prices.

- SHFE Tin: Closed at 263,460 yuan/mt, up 0.50%. The spot market showed sluggish demand, while futures remained elevated.

- Outlook: Tin prices are expected to fluctuate with potential upward movement, contingent on macroeconomic news.
 
 Nickel

- LME Nickel: Settled at $16,175/mt, up 1.1%.

- SHFE Nickel: Closed at 126,600 yuan/mt, up 2.02%. The weaker dollar and election uncertainty drove gains, although domestic demand was moderate.

- Outlook: Nickel prices may remain strong as economic sentiment fluctuates, with further growth in consumption yet to be confirmed.

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Market Sentiment: Overall, non-ferrous metals benefited from a weaker US dollar and election-driven volatility. However, consumer resistance to high prices in certain markets, such as copper and lead, could lead to increased caution. The Fed’s upcoming decisions and ongoing macroeconomic factors will be key in shaping price trends.