London aluminum, zinc on track for best week since January

The dollar hovered at 15-month lows after a steep dive in the previous session, as markets wagered the Federal Reserve was close to the end of its rate hike cycle due to easing inflation.

Three-month aluminum on the London Metal Exchange advanced 0.5% to $2,289 per metric ton by 0554 GMT and was up 6.7% on a weekly basis, on track for its best week since Jan. 13.

“Macro remains key in driving the metals’ prices. We expect the forward guidance from the Fed following the June meeting to set the tone for the central bank narrative until the end of the year,” broker Sucden Financial said in a report.

“Once the peak rate is priced in by markets, we expect the focus to shift back to China to help guide the prices,” it said.

China is the world’s biggest metals consumer and its current weak demand has been weighing on prices.

LME zinc fell 0.1% to $2,475.50 per metric ton, but the contract is set for its best weekly performance since Jan. 13, up 4.8%.

LME copper eased 0.1% to $8,684.50 per metric ton. It was rising 3.7% on a weekly basis, on track for the best weekly gain since March 24.

LME nickel was almost flat at $21,300 per metric ton, lead dipped 0.1% to $2,124 and tin dropped 0.7% to $28,600.

The most-traded August copper contract on the Shanghai Futures Exchange rose 1.4% to 69,420 yuan ($9,742.47) per metric ton, aluminum advanced 0.9% to 18,420 yuan and zinc increased 1.3% to 20,620 yuan.

SHFE lead increased 0.9% to 15,765 yuan, but nickel dipped 1% to 166,600 yuan and tin 1.6% to 232,580 yuan.