London Metal Exchange three-month base metals prices universally closed up on the previous day on Tuesday July 21, bolstered by the announcement on the European Union's ?,?750 billion ($857 million) fiscal package to fight the fallout of the global Covid-19 pandemic.
The approval of the EU's recovery fund is expected to shore up a large amount of liquidity, which market participants anticipate will significantly boost industrial appetite for LME base metals. "I think the big tailwind for the complex is this EU fiscal package, but I think if we want to see new orders, particularly in copper and zinc, we need a pretty swift correction in LME three-month prices," a European trader told Fastmarkets. Speculative sentiment across LME base metals has improved accordingly, while a recent series of stock drawdowns and fresh cancellation across metals,...