MORNING VIEW:Metals face headwinds as treasury yields, dollar rise, fallout from Evergrande looms

September 30, 2021 / www.metalbulletin.com / Article Link

Base metals prices were mixed on the morning of Wednesday September 29 while they consolidated against a backdrop of numerous headwinds.

Uncertainty has picked up regarding how high US treasury yields and the dollar will go and what will the fallout be if China's Evergrande starts defaulting on foreign-owned debt. China's power rationing set to hit metal production and manufacturing, and in turn supply and demand. But the chip shortage will continue to hit demand for metals while manufacturers struggle.Base metalsThe two main movers on the London Metal Exchange this morning were aluminium and tin with the three-month prices down by 0.7% and 0.8% at $2,911 per tonne and $35,510 per tonne respectively. The rest were little changed, with copper off by 0.1% at $9,246.50 per tonne. The most-active base metals contracts on the Shanghai Futures Exchange were also...

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