On Wednesday, July 27, copper prices showed positive dynamics in London on hopes of strengthening demand for metals in China. The three-month LME copper contract rose 1.1% to $7,620 a ton by the close of trading, after falling to $6,955 a ton on July 15.

The overall market sentiment was bullish, boosted by positive US corporate reports that lifted the stock market.

Base metal prices news

According to Marex’s estimates, metal prices were supported by active short covering by speculators, who accumulated short positions and are now forced to make buybacks.

Meanwhile, copper inventories in ShFE warehouses and Chinese customs warehouses are at historic lows. Yangshan premium to the price of copper rose to $87 per ton, the highest value since December, indicating an increase in demand for imported metal.

Meanwhile, analysts at Citibank forecast that China’s economic recovery will stall and copper prices will fall to $6,600 a ton within 6-9 months. “We recommend selling copper and nickel in the coming week as a recession in Europe, a global economic slowdown and a serious supply increase move the commodities market into surplus,” the bank’s experts said.

Base metals price trends

According to economists polled by Reuters, a lot of key economies face the risk of a recession amid high inflation.

Current price of base metals: the cost of aluminum with delivery in 3 months at the LME did not change, amounting to $2,421.5 per ton. Zinc also remained unchanged at $3039/t. Nickel gained 0.8% to $21,750 per ton. Lead dropped by 0.2% to $2,020 per ton. Tin dropped by 1% to $24235/t.

In morning trading on Thursday, July 28, prices of most metals grew in London amid a weaker dollar, and prospects of less aggressive raising the key rate in the U.S., as well as optimism about China’s economic stimulus measures.

As, a three-month LME copper contract rose 1.8% to $777 per ton.

The U.S. Federal Reserve raised its key rate by 0.75% to curb inflation, which is in line with market expectations. Fed chief Jerome Powell’s comments after the rate hike are seen as “calmer,” prompting expectations of fewer possible base rate hikes in the remainder of the year.

Aluminum on the LME rose 1.6% to $2,460.5 per ton. Zinc with three-month delivery rose 2.4% to $3,126.5 per ton. Lead futures rose by 1% to $2,033 per ton. The price of nickel was down 0.4%, to $21730/t.

“More stimulus for [China’s] economy will help support confidence in the market in the short term,” said CRU Group copper market analyst He Tainyu. – However, pressure on prices will persist if China’s export market and real estate market remain in a weak position for a longer time.”

What is the base metals price outlook? The September copper contract rose 3% on the ShFE to 6,280 yuan ($8,937.65) per tonne.

Aluminum rose 4.1% to 18775 yuan per ton in Shanghai. The price of lead rose 0.7% to 15305 yuan per ton. Tin rose by 1.3%, to 195.23 thousand yuan per ton. Quotes on the price of nickel rose by 0.6%, to 169.06 thousand yuan per ton. These are base metals price trends we have today.