Base metals' prices on the London Metal Exchange were mostly lower during morning trading on Wednesday September 5, buffeted by continued strength in the US dollar while emerging market weakness, notably in Argentina, continues to rattle commodity investment.
That said, marginal upticks in the three-month copper and nickel prices over the morning come after both metals had dropped more than 2% by Tuesday's close. Stock drawdowns and fresh cancelations across the LME's base metals inventory continue to have little effect on price action, with more than 100,000 tonnes of copper and 60,000 tonnes of aluminium freshly canceled since August 20 - while the latter's total on-warrant count remains at a 10-year low. Meanwhile, macroeconomic headwinds continue to limit upward momentum, with the continued trade rift between the United States and China threatening the global economy. In the US, a public comment period regarding another round of tariffs on $200 billion worth of Chinese goods is set to end on Thursday. Similarly, while crisis-hit Argentina...