Global base metals futures prices experienced mixed movements on Monday June 10, with copper, nickel, and tin seeing gains, while aluminium and lead saw slight declines. Zinc, however, recorded the largest price increase, reflecting potential physical tightness in the market.
According to Fastmarkets analyst James Moore, trade volumes were light due to local holidays in Australia and China. Despite this, 1,900 tonnes of copper were delivered into LME warehouses, with a significant portion going to East Asian locations like Singapore and Kaohsiung.
The trend of copper deliveries into East Asian warehouses has been on the rise, with stocks now at 60,475 tonnes, a 145% increase since the beginning of May. Global copper stocks, on the other hand, increased by 8% to 125,325 tonnes.
The rise in zinc prices may be attributed to physical tightness in the market, as reflected in treatment charges for imported concentrate into China reaching lows not seen since June 2018. Although supply is expected to remain tight, analyst Ed Meir noted that June traditionally represents a weak seasonal period for prices.
Overall, the base metals market continues to be influenced by various factors such as supply constraints and seasonal trends. Traders and investors are advised to stay informed with metals price forecasts and analysis to make strategic decisions in the global base metals industry.
