Copper prices eased in early trading this morning as COMEX copper slipped to around $2.71/lb. while LME 3-mo. copper was trading below $5,995/mt. The other major base metals were mixed this morning amid a firmer dollar and a pullback in crude oil futures.
In New York, NYMEX crude prices were back below $56 per barrel this morning after having traded as high as $57.04/bbl on Monday. Reuters reports “…that concerns {have} faded for now that rising tensions in the Middle East would escalate and hit oil supplies, compounding the impact of a weaker demand outlook.” Reuters also reports that “Canada’s exemption from U.S. tariffs on imports of aluminum metal has boosted earnings at the Canadian operations of companies such as Rio Tinto and Alcoa, but has not cut costs for U.S. consumers. In May, the U.S. lifted the Section 232 tariff of 10% imposed on Canadian imports of aluminum, a vital ingredient for auto makers, drinks firms and military equipment companies.” LME 3-mo. aluminum was trading above $1,820/mt this morning. In forex trading the British pound was down to around $1.244 as Boris Johnson prepares to take over as Prime Minister, while the euro was buying $1.117. Of note, the FT reports “The IMF is due to issue an update to its World Economic Outlook on Tuesday, providing clues about the state of the world economy after a downbeat assessment of global growth in April.”
