1. Metals Outlook
  2. Daily Base Metals Report

US stocks fluctuated as markets assessed another batch of corporate earnings results and US pricing data that pointed to further easing. The core PCE measure softened its pace in December, growing at 4.4% y/y, the lowest growth in over a year, but still way above the Fed’s target of 2.0%; personal spending, adjusted for inflation, fell by 0.3% in December. This was then underscored by the University of Michigan data that showed inflation expectations easing to 3.9% for 1-year ahead and 2.9% in the next ten years. The data is one of the latest releases before the Fed meeting on Wednesday, which is now firmly seen hiking by 25bps, followed by another 25bps in March. The ECB hike of 50bps is also set in stone by the market. The dollar edged slightly higher, and the 10yr US Treasury yield was at 3.52%.

The mood soured slightly in the latter half of the day across the base metals markets, driven in large by US inflation-related data. Overall sentiment remained quiet. Tin gave back some of its recent gains, as it fell by more than $1,300/t to close at $30,838/t. Aluminium was also seen lower in the latter half of the day, falling slightly to settle at $2,627/t, still remaining in line with the last two weeks’ average; cash to 3-month spread widened once again, settling at -$35.50/t, the recent lows. Likewise, copper remained elevated above $9,250/t after prices struggled below this level, settling at $9,263.50/t. Lead and zinc closed lower at $2,183/t and $3,413.50/t, respectively.

Oil futures weakened sharply in the latter half of the day, with WTI and Brent falling to $79/bl and $86/bl. Gold remained unchanged at $1,929/oz, and silver weakened slightly to $23.55/oz.

Lme Metals Price And Volume 27012023

All price data is from 27.01.2023 as of 17:30


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