Base metals on the London Metal Exchange were collectively lower during morning trading on Monday January 14, weakened by poor economic data from China at a time when global trade uncertainty continues to dampen risk appetite.
Worst affected, zinc's three-month price was down by just over 1% this morning, falling to an intraday low of $2,455.50 per tonne despite a continued drawdown in LME stocks, which sit at just over 126,000 tonnes. Meanwhile, tightness in the metal's forward curve continues to ease into January, with the metal's cash/three-month spread now in a backwardation of $6 per tonne, narrowing from $77 per tonne last week. Elsewhere, copper futures shed just under 1% in a similar sell-off, dipping below $5,900 per tonne despite trading close to $6,000 per tonne for most of January. "December saw Chinese trading activity decrease significantly as a result of the trade dispute with the US. Contrary to expectations, both...