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Daily Base Metals Report

Tariff Tensions Take Centre Stage as Markets Brace for 'Liberation Day'

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

•    Markets brace for US-EU tariff escalation
•    Dollar and yields retreat on risk aversion
•    Base metals mixed ahead of evening announcement

Macro 

US equities opened lower today as markets positioned cautiously ahead of President Trump’s anticipated tariff announcement, due later this evening at 4 p.m. Washington time. Styled as "US Liberation Day," the announcement is expected to include new tariffs—potentially as high as 25%—on all EU exports to the United States. The European Commission has confirmed it will respond in a single coordinated move, preparing a package of countermeasures worth €26 billion to cover both the upcoming auto tariffs and the steel and aluminium duties already in place. With retaliation almost certain, the risk of a full-scale trade war between the US and EU is intensifying.
The dollar extended recent losses, dipping below the 103.8 mark, while the 10-year US Treasury yield tested a key support level at 4.11%—a threshold it has not breached since October—reflecting safe-haven demand and rising growth concerns. From a data perspective, US ADP employment change in March came in stronger than expected at 155k, up significantly from February’s 77k. However, the positive surprise failed to shift sentiment, as attention remains firmly fixed on today’s tariff developments.

Base Metals

Base metals were mixed in subdued trading ahead of the US tariff decision. LME copper held steady at $9,707.50/t, showing modest gains despite lingering uncertainty over potential retaliatory measures. Aluminium extended its decline, dropping to $2,490.50/t—its lowest level since early February—as bearish sentiment persisted amid demand concerns. Zinc led losses, falling to $2,780/t, continuing its recent downward momentum. Nickel also slipped to $15,990/t, while lead dropped to $1,973/t after failing to hold key support levels. Tin defied the trend, rising 0.88% to $37,810/t, maintaining its resilience on persistent supply concerns out of Myanmar.

Precious Metals and Oil

Gold remained in focus as geopolitical tensions escalated, inching higher to $3,130/oz but struggling to maintain momentum at this level. Silver followed suit, hovering just below $34.00/oz. Oil prices remained volatile, with WTI trading at $71.4/bbl and Brent at $74.6/bbl, as markets weighed ongoing geopolitical risks and potential supply disruptions linked to tariff responses.

Lme Metals Price And Volume 02042025

All price data is from 02.04.2025 as of 17:30

Disclaimer

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