Base Metals Comments

The three-month on LME copper edged higher, rising 0.1% to $9,981/tonne due to easing fears of a Russian invasion after Russia returned some troops to bases after some military exercises near Ukraine, however, President Biden warned that an invasion remains very much a possibility. Copper inventories are especially tight, noting that at 70,125 tons on the LME, inventories of the industrial metal are at their lowest level in more than 16 years.

LME Aluminium traded marginally higher, up 0.1% to $3,212.5/tonne where supply tightness marginally overshadowed the bearishness from reduced geopolitical tensions.

Another key factor driving markets are the impending rate hikes by central banks. Today is the release of the minutes of the Federal Reserve’s January policy meeting, with investors looking for cues on the likelihood of a 50bp rate hike which would weigh down on base metal prices.

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