Base Metal Update

🔸 Copper: The announcement of a 25% tariff on imported cars by the US has increased trade tensions, pushing COMEX copper to new highs. Copper prices are likely to remain volatile with limited downside due to hedging pressure on the supply side and weak demand.

🔸 Aluminum: The US Dollar Index remains strong, while SHFE aluminum is weak. Prices may rise due to government policy support and demand from the automobile sector. SHFE aluminum could test the 21,000 yuan/MT level.

🔸 Lead: Supply shortages due to smelter maintenance and demand for scrap batteries are supporting prices. However, weak demand during the off-season could lead to price fluctuations.

🔸 Zinc: Zinc remains volatile due to the impact of tariffs. Pressure from US inflation and strong job data persists. Keep an eye on trade negotiations and global political developments.

🔸 Nickel: SHFE nickel remains volatile due to the impact of Indonesian tax policies. Monitor the implementation of these policies, which could lead to a price surge.