PetroChina to start metals trading, eyeing energy transition
In addition to lithium and copper, the new PetroChina unit may also look to trade nickel.
Aluminum led base metals lower, extending losses from the previous session, as traders wait for the Federal Reserve’s final interest-rate decision for 2024 later this week.
Fed Chair Jerome Powell is widely expected to deliver a quarter-point of easing on Wednesday, but US retail sales data came in stronger than expected at a time when several policymakers are calling for a more gradual approach to rate reductions going forward.
Commodities pulled back across the board Tuesday, shrugging off a report that Chinese leaders were planning to set an annual growth goal of about 5% for next year and raise the budget deficit.
On Monday, aluminum fell after data showed China’s average daily output rose to a record in November, with booming exports encouraging high levels of production. That may partly reflect the end of tax discounts on Chinese exports a month ago, which spurred a rush to ship out ahead of their expiry at end-November.
Aluminum dropped as much as 1.6% to $2,526 a ton on the London Metal Exchange, the lowest since Nov. 14, following a 1.5% decline in the previous session.
The longer run trends are more bullish for aluminum though, according to Commerzbank AG. A slowdown in the expansion of Chinese production is likely, the bank said, citing a sharp rise in input prices and the requirement to reduce emissions. Commerzbank sees the metal rising to $2,800 a ton in the second half of 2025.
Copper fell 0.8%, dipping below $9,000 a ton. Zinc and nickel also fell.
Read More: Aluminum, steel most exposed metals to Trump tariffs, Citi says
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