1. Metals Outlook
  2. Daily Base Metals Report

US stocks bounced back today as a sense of calm triggered a moderate risk-on sentiment today. The markets seem to have digested the news and assurances from central banks about financial stability but still struggled to bring the sentiment back to levels seen a week ago. Still, investors now anticipate a 20bps increase from the Fed tomorrow, and we believe that 25bps will materialise; however, we pay close attention to Powell’s speech later in the day to help drive the sentiment. The dollar continued to be weaker, while the 10yr US Treasury yield jumped back above 3.50%. Elsewhere, ZEW institute’s investor sentiment dropped to 13.0, the first monthly decline in six months, as banking pressures finally weighed on investor confidence.

The mixed sentiment was seen across the base metals today as market fears settled and investors turned back to the fundamentals to help drive the outlook. We continue to see improvements from domestic downstream consumption, and this has driven social inventory lower so far this week. We expect this trend to accelerate into April, providing support for prices in the near term. Aluminium weakened slightly, slowing edging to test the $2,270/t level before settling at $2,266.50/t; the cash to 3-month spread remained low at -$51.00/t. A strong upside in the latter half of the day helped prop up gains for copper, as the metal closed at $8,757.50/t. Lead and zinc, on the other hand, closed lower at $2,094.50/t and $2,864.50/t, respectively.

Oil futures found some respite, with WTI and Brent gaining ground to $68/bl and $74/bl. Meanwhile, China’s imports of Russian energy skyrocketed to $88bn in the year ending February, replacing other buyers that have chosen to cut ties with the nation. Demand for safe havens waned, and gold and silver weakened for the second-straight day to $1,943/oz and $22.20/oz.

Lme Metals Price And Volume 21032023

All price data is from 21.03.2023 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.