1. Metals Outlook
  2. Daily Base Metals Report

US stocks weakened amid the elevated risk-off sentiment, triggering a flight to safe havens once again. The data out of the US pointed to softer demand in the consumer sector after the service sector expanded at a much slower pace in March, 52.6, given weaker new orders and softening business activity. At the same time, ADP pointed to slower job growth, with payrolls rising 145,000, while wage growth slowed, suggesting that the tightness in the labour market might be easing. This has brought the dollar higher to 101.80, while 2yr and 10yr Treasury yields weakened to 3.69% and 3.28%, respectively; the latter tested September lows. Still, Fed officials stand firm on hawkish rhetoric, with Fed Bank of Cleveland President Mester stating policymakers will need to raise interest rates a little bit higher and then keep them higher for longer to help combat inflation.

Metals faced another day of decline as investors shun away from riskier assets, driving the complex to settle lower on the day. A general downward sentiment and continued lack of momentum out of China are bringing metals down to their fundamental levels, erasing some of the risk-on sentiment that we saw take place last week. Aluminium weakened to close at $2,333.50/t; cash to 3-month, on the other hand, tightened slightly into -$41.00/t. Copper managed to find support at $8,700/t, settling at $8,782/t. Lead and zinc closed lower at $2,110.50/t and $2,789.50/t, respectively.

Oil futures remained elevated at $80/bl and $84/bl for WTI and Brent, respectively. Gold and silver remained near recent highs at $2,020/oz and $24.90/oz; gold is only $40/oz away from record highs, highlighting the flight to safe havens that took place in recent weeks.

Lme Metals Price And Volume 05042023

All price data is from 05.04.2023 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.