1. Metals Outlook
  2. Daily Base Metals Report

US stocks fluctuated on Friday after the latest economic data release drove the market. Nonfarm payrolls increased by 233k in October, above expectations of 200k, suggesting continued strength in the labour market that could warrant further tightening from the Federal Reserve. Unemployment increased slightly to 3.7%, and the average hourly earnings softened to 4.7% y/y from a 5.0% growth in September. In Eurozone, PPI figures came in lower both on a month-on-month and year-on-year basis, suggesting softening price growth felt by the producers. However, China’s news overrode the sentiment, driving the dollar lower to 111 as the government officials plan to end covid flight suspensions. Whilst the relaxation is marginal on a relative basis, assets sensitive to China’s consumption story performed well.

As a result, we saw a strong rally across the base metals complex today. Copper rallied by more than 6.0%, breaching highs of $8,000/t, the level not seen since mid-September; the metal settled at $8,099/t. The dollar weakness also provided support for overall metal performance. We expect any news surrounding China’s lockdown conditions to drive the appetite for metals that day, and the announcement of a potential reopening could cause a strong knee-jerk reaction. Zinc was next in line, jumping by more than $170/t to close at $2,874/t. Nickel jumped to test $24,200/t before settling at $23,811/t. Aluminium broke above $2,340/t to close at $2,355.50/t. Lead, however, struggled to maintain the momentum after resistance at $2,040/t sent the metal back down to $1,996.50/t.

Oil futures rallied with other commodities, with WTI and Brent strengthening to $91/bl and $97/bl. Gold and silver benefitted from a softer dollar; silver rallied to $20.75/oz, and gold traded at $1,672/oz.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

Lme Metals Price And Volume 04112022

All price data is from 04.11.2022 as of 17:30


This is a marketing communication. The information in this report is provided solely for informational purposes and should not be regarded as a recommendation to buy, sell or otherwise deal in any particular investment. Please be aware that, where any views have been expressed in this report, the author of this report may have had many, varied views over the past 12 months, including contrary views.

A large number of views are being generated at all times and these may change quickly. Any valuations or underlying assumptions made are solely based upon the author’s market knowledge and experience.

Please contact the author should you require a copy of any previous reports for comparative purposes. Furthermore, the information in this report has not been prepared in accordance with legal requirements designed to promote the independence of investment research. All information in this report is obtained from sources believed to be reliable and we make no representation as to its completeness or accuracy.

This report is not subject to any prohibition on dealing ahead of the dissemination of investment research. Accordingly, the information may have been acted upon by us for our own purposes and has not been procured for the exclusive benefit of customers. Sucden Financial believes that the information contained within this report is already in the public domain. Private customers should not invest in these products unless they are satisfied that the products are suitable for them and they have sought professional advice. Please read our full risk warnings and disclaimers.

Sign up to get the latest market insights

We will email you each time a new report has been published.