Bank Commentary Base metals were stronger, led by gains in zinc...

Bank Commentary
Base metals were stronger, led by gains in zinc and nickel. China’s zinc imports surged higher last month, in a sign that demand conditions remain positive. Imports of refined zinc in June rose 28% y/y to 41,713 tonnes. This was also up 25% from May. Demand for nickel was also stronger, with imports of ferronickel hitting the second highest level on record amid signs from stainless steel mills are looking to restock their raw materials.
Spot iron ore prices pushed higher, despite losses on futures markets in China. Falls of 1-2% across the steel futures failed to scare physical buyers away, as mills continue to restock amid a more positive outlook for steel demand. However, the gains were limited, as concerns over US tariffs on Chinese steel weighed on the market.
Coking coal prices were unchanged on Monday, with market participants trying to make sense of the flurry of transactions last week.
A slight recovery in the USD saw gold struggle to hold its gains. Traders also remained cautious heading into the Fed policy decision on Wednesday. While no rate hike is expected, the market is likely to remain subdued leading into the meeting. However the political uncertainty around President Trump continues to provide some support to prices. Donald Trump Jr and Paul Manafort, former campaign manager, will be attending a Senate committees meeting this Wednesday.