LONDON, July 4 (Reuters) – The London Metal Exchange (LME) Index hit a two-year high in May when funds surged into base metals, chasing a narrative of manufacturing recovery, super-charged energy transition demand and constrained supply.
Doctor Copper, investors’ favourite barometer of industrial activity, soared to an all-time high, spurred by a ferocious squeeze on the CME contract. Both gold and silver markets also climbed as the metals complex returned to the investor spotlight after years of neglect.
However, the base metals rally faltered over June as bullish expectations collided with the reality of high inventories and soft demand in China, the world’s biggest metals user. The LME Index is 10% off its late May highs.
Only one LME base metal has held firm in the broader price retreat. LME tin , trading around $33,250 per ton, is up by 31% on the start of the year, out-performing the others by a wide margin.
For the rest of this column: https://www.reuters.com/markets/commodities/tin-outperforms-broader-base-metals-rally-falters-2024-07-04/#:~:text=Only%20one%20LME%20base%20metal,in%20the%20here%20and%20now.