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Following the significant decline seen in the metals pack in the previous weeks, most metals took a breather this week, with the exception of Lead, which continued to end lower.
Despite a holiday-shortened week, metals fared well throughout the week, with aluminium being the biggest gainer.
The uncertainty surrounding the US debt ceiling was largely put to rest after US President Joe Biden and Republican Kevin McCarthy agreed to postpone the $31.4 trillion debt ceiling until 2025.
Copper prices, which had been hanging near six-month lows, have risen on the back of an unexpected increase in industrial activity in China. The Caixin manufacturing PMI improved to 50.9 in May, signaling a return to growth, in contrast to the official NBS PMI, which showed a fall in activity on Wednesday.
However, the metals' upside is likely to be limited as China's yuan sank to its lowest level against the dollar since November, making them more expensive for Chinese buyers.

OUTLOOK: Due to sluggish demand and dismal Chinese data, metal prices are expected to continue to decline, which points to additional price pressure

 

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