Base metals on the London Metal Exchange ended trading broadly lower on Tuesday June 19, lead by a 2.2% drop in aluminium prices while nickel and zinc's three-month prices dipped 2.1%.
Pressured by a surging US dollar index, which reached a fresh 2018 high of 95.30, the base metals complex traded lower throughout the day.Aluminium's three-month price recorded the largest drop of the day, shedding 2.2% and edging below $2,200 per tonne. The light metal's technical formation has been largely supportive of strong prices, with low stocks and post-sanction uncertainty supporting favorable price levels above $2,300 per tonne since mid-April. Tightness in aluminium's nearby July/August spread, currently in a backwardation of $20.50 per tonne, is also adding pressure to the metal's three-month price, with some participants pointing to stronger premiums in the physical market creating the backwardation. "Negotiations to conclude an agreeable North American Free Trade Agreement (Nafta) are growing unlikely after the US president refused...