1. Metals Outlook
  2. Daily Base Metals Report

US stocks opened higher on the day but struggled to keep momentum as markets continued to assess the hawkish rhetoric of Fed speakers in recent days. Option traders are also seen piling into bets targeting a 6.0% peak rate, up from the current rate of 4.75%. This was also reflected in the 2yr yield exceeding the 10yr yield by the biggest margin since the 1980s. US initial jobless claims rose for the first time in six weeks, but still remained historically low at 196,000, highlighting the labour market resilience following the jobs report on Friday. The dollar continued to soften, and the 10yr US Treasury yield tested the 3.58% level.

Lacklustre sentiment was seen across the metals market, with marginal upside following recent losses. Nickel shot up higher following the news, as reported by Bloomberg, that Trafigura is said to face more than half a billion dollars in losses following what it believes to be a systematic fraud against it, where metal cargo deliveries did not contain the nickel they were supposed to. Nickel jumped higher to settle at $28,142/t. Aluminium remained broadly unchanged at $2,499/t. Copper edged higher, testing resistance at $9,050/t before settling at $8,983/t. Lead and zinc closed higher at $2,126/t and $3,123/t, respectively.

Oil futures dropped slightly on concerns about China's optimism. WTI and Brent traded at $77/bl and $84/bl at the time of writing. Gold and silver struggled to support the earlier gains, as both metals settled lower at $1,873/oz and $22.22/oz, respectively.

Lme Metals Price And Volume 09022023

All price data is from 09.02.2023 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.