1. Metals Outlook
  2. Daily Base Metals Report

US stocks rose higher ahead of the Fed minutes released later on today. The policymakers are expected are expected to soften their tone on the scale of the next interest rate hike in December, while keeping the hawkish rhetoric of higher rates for longer. US initial jobless claims rose to 240,000 in the week ending November 19, more than market has anticipating and a 3-month high, the first sign the labour market conditions might be easing in the face of softer economic demand. At the same time, S&P Global flash PMI dipped further into a negative territory in November, marking the second-weakest level since the pandemic. On the other hand, in the euro area gauges for service and manufacturing sector improved month-on-month in November, to 48.6 and 47.8, respectively; while still contractionary, another sign of slight improvement in confidence in the bloc. The dollar weakened into 106.3 and the 10yr US Treasury softened into 3.72%.

China signalled that more monetary policy stimulus, in the form of a cut to the reserve requirement ratio, might be on the table to support the economy through increased lending. Whilst no specific timeline has been mentioned, the comment is another sign of government attempt to keep ample liquidity in the economy that is suffering under the weight of zero-covid policy. China news however struggled to weigh metals market sentiment today, as trading was mixed across the board. Copper remained broadly unchanged, settling at $8,005/t. Aluminium weakened slightly during the day, down to $2,397/t. Lead and nickel were both seen higher, supported by strength found in the latter half of the day; both metals settled at $2,107.50/t and $26,293/t, respectively.

Oil futures fell as the EU is set to discuss a price cap introduction on Russian oil between $65/bl and $70/bl. WTI and Brent weakened to $77/bl and $85/bl. Gold and silver fluctuated but managed to settle higher at $1,742/oz and $21.32/oz, respectively.

Lme Metals Price And Volume 23112022

All price data is from 23.11.2022 as of 17:30


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