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Daily Base Metals Report

Markets Rally on Softer Tariff Rhetoric, but Growth Worries Linger

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

Summary

• Global equities climbed after Trump hinted at tariff relief for China
• Flash PMIs show eurozone and UK private sectors sliding into contraction
• Gold retreats as dollar firms, silver finds support amid mixed sentiment

Macro:
US stocks opened sharply higher, mirroring gains in Asian and European markets after President Trump signalled that tariffs on Chinese goods could soon be reduced. While no timeline or specifics were provided, the shift in tone—alongside Trump’s reassurance that he has no plans to dismiss Fed Chair Powell—boosted investor confidence. The dollar regained some ground, with the index rising above 99.5, while the 10-year US Treasury yield edged lower to just below 4.33%. However, the optimism was tempered by a string of weak economic prints across major economies. UK flash composite PMI dropped sharply to 48.2 in April—the lowest level since November 2022—marking a return to contraction territory amid declining private sector output. The eurozone followed suit, with services activity slumping to 49.7, led by deepening contractions in both France and Germany, where services were hit by trade-related uncertainty and fading domestic demand. In the US, business activity slowed to its weakest pace in 16 months, with companies reporting a steep uptick in input prices. The data reinforced concerns about stagflation, potentially complicating the Fed’s policy path.

Base metals:
Base metals responded cautiously to today’s shift in market sentiment, supported in part by President Trump’s unexpected signal that tariffs on Chinese goods may soon be scaled back. Aluminium led the advance, rising to $2,431.50/t as risk appetite improved and buyers returned following recent consolidation. Zinc also found support, climbing to $2,637.50/t, reflecting some short-term optimism around a potential de-escalation in trade tensions. However, broader gains were limited by weak economic data across key regions, which weighed on industrial demand expectations. Copper was little changed at $9,370/t, as markets balanced optimism over reduced tariff risk with concerns about slowing global growth. Nickel slipped to $15,660/t amid softer momentum, while tin and lead posted moderate gains, closing at $31,230/t and $1,935/t respectively. Despite today’s relief rally, positioning remained light, as investors continue to monitor the evolving macro backdrop for further direction.

Precious metals and oil:
The rebound in the dollar and renewed demand for Treasuries weighed on gold, which fell below $3,280/oz, though broader market volatility continues to support precious metals as a hedge. Silver diverged, climbing to $33.50/oz. Oil prices fluctuated, with WTI and Brent last seen at $61.8/bbl and $65.6/bbl, respectively.

Lme Metals Price And Volume 23042025

All price data is from 23.04.2025 as of 17:30

Disclaimer

This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

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