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| Copper |
Market sentiment is cautiously monitoring discussions between the US and Russia, as a potential resolution to the nearly three-year Ukraine conflict could affect trade sanctions.
“If the discussions between the US and Russia proceed favorably, the likelihood of lifting the ban on metals sourced from Russia will increase, subsequently leading to an influx of Russian metals into the western market,” a trader commented.
The LME has banned Russian metals produced on or after April 13, 2023, from its system. However, if restrictions are lifted, it could alter the supply dynamics for aluminium, nickel, and copper.
Copper Market Movements and Metal Price Trends
The spread between the LME cash copper contract and three-month futures spiked to a $249 per ton premium on Friday—the first time in 19 months—before flipping to a $74.5 discount on Tuesday as traders rolled forward positions.
Meanwhile, broader base metal movements were mixed:
- Aluminium remained steady at $2,646 per ton.
- Zinc rose 0.2% to $2,877.5 per ton.
- Tin gained 0.3% to $32,765 per ton.
- Lead slipped 0.3% to $1,986.5 per ton.
- Nickel shed 0.4% to $15,435 per ton.
On the Shanghai Futures Exchange (SHFE):
- Aluminium dropped 0.3% to 20,650 yuan ($2,839.58) per ton.
- Copper declined 0.9% to 76,820 yuan per ton.
- Zinc advanced 0.5% to 23,930 yuan per ton.
- Lead edged up 0.1% to 17,150 yuan per ton.
- Tin added 0.1% to 263,410 yuan per ton.
- Nickel remained flat at 124,020 yuan per ton.
With geopolitical tensions and contract expiry in focus, traders are bracing for potential volatility in base metal markets.
