1. Metals Outlook
  2. Daily Base Metals Report

US stocks closed the week on the front foot, with S&P 500 closing the seventh consecutive day higher and marking highs not seen since April 2022. The expiration of options contracts led to higher volatility during the day. Some Fed officials reiterated today the need for further tightening to help reduce inflation and slow the pace of the labour market. As of Friday, forward swaps are pricing in 17bps in July, down from 21bps seen at the start of the week. However, at the same time, the market has completely priced out the case for cuts later on in the year. US year-ahead inflation expectations fell to 3.3% in early June, a 2-year low, while longer-term expectations eased slightly, highlighting the stronger case for inflation easing in the latter part of the year. The dollar found support at 102.20 today, and the 10yr US Treasury yield remained unchanged.

Likewise, base metals closed another week higher as markets increased their bets for further stimulus from China. Iron ore remained steady above $110/mt, and nickel tested the resistance of $23,400/t, a level not seen since the start of May. Copper continued to edge higher, gaining ground for the fourth straight day, testing the $8,600/t level to settle at $8,566.50/t. Aluminium gains were more moderate, keeping the longer-term range of $2,200-2,300/t intact. We have seen market focus shift from the supply to demand story in recent weeks, and continued weakness from the consumption side has weighed on sentiment as the supply side in Yunnan is seen normalising. Lead and zinc closed at $2,141/t and $2,478/t, respectively.

WTI and Brent futures remained broadly unchanged after yesterday's gains, holding firm above $71/bl and $76/bl. Gold and silver closed the week unchanged at $1,958/oz and $24.00/oz, respectively.

Lme Metals Price And Volume 16062023

All price data is from 16.06.2023 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.