Base metals prices on the London Metal Exchange were predominantly lower during morning trading on Tuesday October 30, with escalated US-Sino trade tensions hampering base metals amid weaker oil prices and a strong US dollar index.
The three-month zinc price fell below $2,600 per tonne for the first time since October 17, despite drawdowns in LME stock, which remains at its lowest level since July 2008 at 152,225 tonnes. In addition, tightness in the metal's nearby cash/three-month spread remains firmly in place, with a $59.50-per-tonne backwardation little changed from Monday's reading. The three-month lead price continues to fall further from the $2,000-per-tonne threshold, trading at its lowest level since reaching $1,876 per tonne on October 11, while a rewarranting of more than 19,000 tonnes contributed to downward price action. "The US government appears to be ramping up the pressure on China in the trade dispute, with the result that metals prices are falling for fear of new...