1. Metals Outlook
  2. Daily Base Metals Report

US stocks pushed lower today after a number of Federal Reserve speakers reaffirmed their resolve to keep the rates higher for longer. Other speakers have echoed market concerns surrounding the inflation outlook, highlighting prevailing uncertainty in the market. Bank of NY President Williams stated that if the situation changes, the bank can move faster than 25bps hikes. Still, the consensus of 5-5.25% peak rates is now mostly pencilled in by policymakers. The forward swaps have shifted the pivot and scale of the Fed pivot slightly down the curve. The dollar and the 10yr US Treasury yield remained unchanged. Meanwhile, used car prices have jumped higher in January, growing by 2.5% m/m, following a surprising 15% y/y decline in December. this is due to the high base of performance by the end of 2021 when supply chain bottlenecks intensify, and we expect demand for vehicles in the US is expected to remain stable in Q1’23.#

Market momentum continues to be driven in large by macroeconomic factors, as the Chinese story recovery is developing slower than markets originally anticipated. Aluminium prices weakened for the sixth straight day, testing support at $2,480/t and settling at $2,481/t. The metals decline has also benefitted from the data pointing to a sharp increase, up by 100,000 tonnes, in stockpiles in South Korea. The cash to 3-month spread remained low at -$40/t as a result. Copper opened on the front foot, but the momentum did not last, as prices struggled above $9,000/t, and the metal settled lower at $8,892.50/t. Nickel fluctuated but remained broadly unchanged at $27,390/t. Lead and zinc closed at $2,120.50/t and $3,1,32/t, respectively.

Oil futures remained unchanged; WTI and Brent settled at $77/bl and $83/bl. Gold and silver wavered and settled at $1,873/oz and $22.30/oz, respectively.

Lme Metals Price And Volume 08022023

All price data is from 08.02.2023 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.