Prices in the London Metal Exchange base metals complex became firmer on Tuesday May 14 when it was realized that the effects of proposed Chinese tariffs side-stepped the base metals to focus on imports of minor metals and ferro-alloys.
The duties would be imposed by China on materials from the United States from June 1, in retaliation for increased US import duties on Chinese goods in the two countries' continuing trade war.But any optimism this creates in the base metals complex may be short-lived, because market participants see this as nothing more than a systematic short-covering exercise while they struggle to cover their downside risk...