Most base metals were lower in Europe on a stronger dollar and renewed concerns over China’s demand outlook after the country left its key policy rates unchanged.
“The appetite across the [London Metal Exchange] remained lacklustre, as volatility is being sold across the board,” Sucden Financial said.
“Moreover, the [People’s Bank of China] has kept the one-year interest rate unchanged at 2.5%. Muted economic performance and a potential for another weakness in the yuan are the most likely reasons for the rate pause.”
Meanwhile, Rio Tinto, eager to branch out into lithium , remains sanguine on the battery metal’s outlook despite a plunge in prices last year.
In a quarterly report, Rio Tinto noted the continued decline in the lithium carbonate spot price, which has fallen roughly 80% since early 2023, and said it reflected increased global mine supply and destocking along the supply chain.