1. Metals Outlook
  2. Daily Base Metals Report

US stocks fluctuated ahead of the Fed minutes later tonight, which we expect to point to a higher-for-longer terminal rate environment. With the bulk of the latest interest rate hikes now being priced in, the markets will try to gauge e the policymakers’ outlook in regard to the upcoming meetings in March and May. No big hikes are on the table, but instead, the investors will be paying attention to the rate pivot guidance. Economists now anticipate the PCE gauge to average at 2.4% on an annual basis in mid-2024 compared to 2.3% last month, highlighting the upward stickiness of inflation in the longer term. The dollar tested the 104.40 level, whereas the 10yr US Treasury yield came off slightly following yesterday’s gains. European CPI is out tomorrow and is forecast to edge slightly higher y/y to 8.6%.

Metals suffered today from a lack of demand in China and continued tightening speculations from the Fed. Today’s weakness offset the most recent gains, bringing the metals back to fundamental levels seen last week. Aluminium breached the support of $2,420/t level to trade slightly lower to close at $2,418/t. Copper weakened, testing the support level of $9,050/t but gaining slight momentum to close at $9,112/t. Lead and zinc weakened to close at $2,103.50/t and $3,057/t, respectively. Iron ore futures fell, following a recent rally touching the $140/mt level, as the exchange tweaked trading rules, following a string of warnings from authorities that prices had rallied too far.

Elsewhere, oil extended its longest run of losses so far in 2023, with WTI and Brent weakening to $74/bl and $80/bl. US natural gas futures fell below $2 for the first time since 2020 as markets gave up on hopes of extreme cold boosting winter demand. Gold and silver continued to retest the recent lows of $1,833/oz and $21.63/oz, respectively.

Lme Metals Price And Volume 22022023

All price data is from 22.02.2023 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.