Base metals opened the European trading session mostly firmer, with aluminium leading gains at 0.3% from Thursday's official close, according to Metal Radar. Copper and tin each added 0.2%, while nickel gained 0.1%. Lead was the sole clear decliner, falling 0.2%, and zinc remained effectively unchanged.
Coppermarket momentum continues to build, with the metal on track for a tenth consecutive weekly gain following early trade around 0.2% above Thursday's close. Analysts attribute the strength primarily to dollar weakness, though the narrowing LME cash-to-three-month backwardation suggests that immediate supply stress has moderated. Federal Reserve Governor Christopher Waller's signal that moderating inflation could justify leaving interest rates unchanged this month has reduced market expectations for a September rate increase to around 50% from approximately 63% previously.
Aluminium demonstrated particular resilience despite persistent physical market tightness, gaining 0.3% during early trading. LME stocks stand at their lowest level since 1990, while Shanghai inventories have declined for 11 consecutive weeks. Zinc posted negligible movement after warehouse deliveries partially eased tight nearby availability.
Lead slipped during morning trading, while nickel and tin edged marginally higher. Nickel supply dynamics may shift as African Rainbow Minerals plans to restart concentrate production at Nkomati. In precious metals, gold held near $4,469 an ounce following Thursday's 2% jump and was tracking toward a modest weekly gain as investors awaited U.S. employment figures.
Silver eased 0.5% to approximately $66.59, while platinum and palladium fell roughly 1.2% and 1.3%, respectively. Despite Friday's pullback, elevated platinum-group-metal prices remain commercially significant, with African Rainbow Minerals reporting that prices rose more than 50% over its financial year, returning its PGM operations to profitability. The dollar index traded around 99 in early Friday sessions after declining 0.6% overnight and was heading for a 0.7% weekly decline.
The euro traded near $1.163 late Thursday, helping cushion euro-denominated buyers from elevated dollar-based metal prices. The yen was positioned for its strongest week since late July as markets assigned a 75% probability to a September Bank of Japan increase. South Africa's rand also strengthened, raising the dollar cost of local operating expenses for the country's PGM producers.
Steelmarkets benefited from mildly constructive demand signals, with preliminary industry data showing British August new-car registrations rising approximately 13% to more than 90,000, their strongest August level in eight years. Upstream, Stanmore Resources agreed to acquire the Moranbah South metallurgical-coal project for $105 million, subject to transaction conditions. Seaborne costs remain a concern after the Baltic dry-bulk index climbed 4.7% to its highest level in nearly five years, potentially raising delivered input costs.
Market-moving catalysts ahead include UK composite PMI data and eurozone retail sales, which will shape the European demand outlook. The principal global catalyst is the August U.S. payrolls report scheduled for 12:30 GMT, which could rapidly reset Federal Reserve expectations, dollar valuations, and metals prices. Statements from ECB chief economist Philip Lane and Bank of England Governor Andrew Bailey are also scheduled.
Source: Metal Radar
Source: metalradar.com