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Global base-metal markets continue to show signs of tight physical supply, particularly for copper and zinc, although some of the pressure eased towards the end of last week, according to Access Bank Group.
The bank said copper and zinc remained firmly in backwardation, indicating continued concerns over nearby supply availability despite a moderation in market spreads.
Copper’s cash-to-three-month spread narrowed to US$151.59 per tonne from more than US$208 per tonne two days earlier.
Zinc’s equivalent spread also declined to US$200.96 per tonne from US$231.75 per tonne.
Read more: Kwacha gains as copper prices surge above $14,000
“The easing spreads pointed to some moderation in immediate supply stress, although physical market conditions remained tight,” the bank said.
It said zinc’s tom-next premium also fell sharply, while copper’s front-end structure remained volatile, reflecting continued uncertainty over the availability of the metals.
“Aluminium, by contrast, remained in contango, highlighting a comparatively more comfortable supply backdrop,” the bank said.
The bank added that resilient demand for artificial intelligence-related hardware, coupled with rising input costs, including non-ferrous metals, continued to support the broader metals sector.
However, it said the narrowing spreads could suggest that the most extreme near-term supply tightness was beginning to ease.
Meanwhile, the Zambian Kwacha extended its recovery against the United States dollar on Friday, gaining for a third consecutive trading session.
According to Bloomberg data cited by Access Bank, the kwacha appreciated by 0.13 percent to close just above K19.00 per dollar after failing to sustain an intraday break below the level.
Despite Friday’s gain, the currency recorded its second consecutive weekly decline, highlighting continued pressure on the local unit.
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