5 March 2026 – The European Parliament’s trade committee has once again suspended work on the EU-US trade deal despite opposition from the European People’s Party. Asian base metals moved sideways on Thursday. China announced plans to gradually reduce capacity in the steel and oil sectors.
Asian Base Metals Move Sideways
Prices for Asian base metals such as nickel and copper moved in a stable sideways pattern on Thursday. Aluminium prices rose by around 1.3%, bringing the weekly gain to more than 4% compared with the previous week.
Base metals on the London Metal Exchange (LME) had mostly closed Wednesday with gains or slight increases. At the start of trading in Europe, prices were again moving sideways in a stable range.
Parliament Suspends Work on EU-US Trade Deal
Against the opposition of the European People’s Party (EPP), members of the European Parliament’s Committee on International Trade (INTA) have temporarily suspended work on the EU-US trade deal.
According to the political groups Progressive Alliance of Socialists and Democrats, Renew Europe, The Greens – European Free Alliance, and The Left in the European Parliament, they want clarification from the US administration on whether and how recent tariff changes could affect the negotiated agreement.
The decision is also viewed as a reaction to the dispute between the United States and the government in Madrid over the use of Spanish airports by the US military in connection with the conflict involving Iran.
President Donald Trump reportedly threatened to suspend all trade relations with Spain after Spain refused to allow US refueling aircraft to use its airports.
EPP wants to continue working on the deal
The EPP, by contrast, had advocated continuing work on the agreement despite the difficulties in order to demonstrate reliability as a trade partner.
Swedish Member of the European Parliament and EPP INTA coordinator Jörgen Warborn wrote on social media:
Regrettably, the U.S. files have been postponed. The EPP has made every effort to provide solutions to address potential new tariffs that would breach the Turnberry deal, while still respecting our side of the agreement. To show that the EU is a reliable trade partner.
— Jörgen Warborn (M) (@jorgenwarborn) March 4, 2026
However, other groups did not agree. It is a shame that an anti-Trump narrative is being pushed more strongly than a pro-European one, risking a transatlantic trade war. Citizens need clarity and predictability. Today, S&D, Renew the Greens and the Left deprived them of that.
— Jörgen Warborn (M) (@jorgenwarborn) March 4, 2026
We expressly welcome MEP Warborn’s position on this matter.
China Plans Orderly Reduction of Steel and Oil Capacity
According to media reports, China has announced plans to further reduce overcapacity in the steel and oil refining industries in an orderly manner.
However, the country’s National Development and Reform Commission did not provide specific figures or timelines in its annual report.
Capacity in Other Sectors to Be Managed
Capacity in copper smelting as well as in the aluminium and coal-chemical sectors is to be managed but not explicitly reduced.
China had already placed several planned new copper smelters on hold late last year.
At the same time, the country intends to strengthen exploration and stockpiling of strategic raw materials and expand resource extraction activities abroad.
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