Base metal prices were mixed in official trading on the London Metal Exchange (LME) on Wednesday.
Most metals were rangebound and consolidated earlier gains after a slight cooling of trade tensions between the US and the rest of the world after a number of shifts from US president Donald Trump.
The US and China agreed to lower import taxes on goods being traded between the two countries earlier this month, with the US now imposing tariffs of around 50pc on Chinese goods, while China is taxing imports of US goods at around 30pc. Then over the long weekend, Trump agreed to extend a deadline to negotiate tariffs with the EU to 9 July from 1 June, having earlier threatened 50pc tariffs on all imports from the bloc.
Investors were parsing through the minutes from the latest US Federal Reserve meeting earlier this month for further indications about how policymakers were approaching their target interest rate
The Fed reiterated its stance to move cautiously before adjusting rates from 4.25-4.5pc to allow for time to fully measure the impact of the new US administration's tariff and other policies on the economy.
"Participants agreed that uncertainty about the economic outlook had increased further, making it appropriate to take a cautious approach until the net economic effects of the array of changes to government policies become clearer," according to minutes of the May meeting released Wednesday.
"Overall, participants judged that downside risks to employment and economic activity and upside risks to inflation had risen, primarily reflecting the potential effects of tariff increases," the minutes said.
Futures markets suggest the Fed will hold its rate unchanged at the next two meetings, in June and July, with only around 58pc probability policymakers will cut in September.
The US dollar continued to strengthen, with the index — measured against a basket of six peer currencies — at 99.72 at the end of the LME ring session, up from 99.30 at the same time on Tuesday. The dollar was on track to close higher, hovering around 100 in the early afternoon.
Three-month LME copper prices settled at $9,635/metric tonne (t) in today's official session, up by 16pc from Tuesday's official price level. In the US, the copper contract for the next active month — July — on the Chicago Mercantile Exchange retreated further, falling by 1.4pc to $4.65/lb.
Argentina expects to become one of the world's top copper producers in the coming decade, giving the country a major role in the energy transition. Argentina has not produced copper since 2018, but its mining secretary estimates production in the near future at nearly 900,000 t/yr from seven projects at an advanced stage of development, while another 15 projects could triple that output. Investment in the first seven projects would be of approximately $19bn.
Zambia's copper output rose by around 30pc on the year to 224,103t in the first quarter of 2025, with major producers Konkola Copper Mines and Mopani Copper Mines both ramping up output, according to the ministry of mines. Late last year, Zambia's copper output was disrupted by a drought that hampered hydroelectricity supply to the mining sector.
Three-month LME aluminum prices were by 0.3pc higher on the day, settling at $2,480/t.
The German aluminum industry posted a slight increase in production in the first quarter after output fell through 2024, but remains under pressure and in need of energy price relief as well as a "reliable framework" for growth, industry association Aluminium Deutschland said this week. Germany produced 703,000t of recycled aluminum in the first three months of this year, up by just 3pc from the corresponding period last year, while output of semi-finished aluminum products edged up by 1pc to 576,000t.
Three-month LME lead prices edged down by 0.3pc to $1,979/t today, while three-month LME zinc prices were higher by 0.4pc at $2,708/t.
Benchmark nickel and tin saw more significant movement today, with both falling from yesterday's levels. Three-month LME nickel dropped by 1.9pc to $15,130/t, and three-month LME tin fell by 2.3pc to $31,900/t.
The July forward contract for WTI, the US crude benchmark, rose by 95¢/bl to $61.84/bl.
