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Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Contact research Contact Industrial Commodities

US stocks edged higher on Monday ahead of the week of midterm elections and the inflation reading later on Thursday. Polls for the US midterms on Tuesday are pointing to a split outcome, especially given Biden’s low approval rating, which could swing to Republicans taking some of the positions in the House or the Senate. A number of Fed officials are speaking at events this week, and their comments should help solidify the market’s expectations of the central bank hiking cycle outlook for the December and February meetings. Meanwhile, with the central bank meeting underway, investors now turn their gaze to US inflation this week, which is expected to soften below the 8.0% level on a year-on-year basis. Even if lower figure materialises, the Fed’s rhetoric last week confirmed that the policymakers’ plan to continue the hiking cycle into the start of next year. The dollar softened slightly into 110, and the 10yr US Treasury yield remained elevated at 4.19%

Elsewhere, with the rumours of lockdown easing in China disproved by government officials and the poor data release today, the momentum struggled to carry over form Friday. China’s exports and imports both fell unexpectedly in October, down by 0.3% and 0.7% y/y, respectively, as the looming threat of recession has soured the international demand for Chinese goods. Performance across the base metals group was mixed today. Aluminium gapped lower on the open, at $2,280/t, and struggled to break above Friday’s close as it edged close to close at $2,337/t. Likewise, copper opened at $8,000/t and continued to drift lower throughout the day to close at $7,914.50/t. Nickel settled at $23,395/t. Both lead and zinc closed higher at $2,036.50/t and $2,886/t, respectively.

Oil futures edged marginally higher on the day, with WTI and Brent trading at $93/bl and $99/bl. Meanwhile, Russia’s seaborne crude shipments jumped to a five-month high of 3.6m bl/d, a month before the EU’s sanctions kick in. Gold and silver remained broadly unchanged at $1,678/oz and $20.90/oz, respectively.

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

Lme Metals Price And Volume 07112022

All price data is from 07.11.2022 as of 17:30

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