The global markets are readying themselves for new tariffs from US on China worth $34 billion worth of goods and that doesn’t augur well for the metal space.
There has been a selloff in the recent weeks, but it seems to be getting worse right now.
Copper and zinc prices are trading at 11-month lows. Nickel and lead decline nearly a couple of percentage points and they are trading at May lows as well.
Steel and iron ore prices started soft in the Asian markets right now.
But the only metal that is trading in the positive is aluminium and that is because China has released statement saying that they will shut down some smelters to ensure environment control and that would lead to some curb in the output.
Crude oil prices also continue to look at the supply concerns. US President Trump on Thursday told Organisation of the Petroleum Exporting Countries (OPEC) to reduce prices now and to increase output substantially.