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Daily Base Metals Report

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Authors
Daria Efanova

Daria Efanova Head of Research

Contact research Contact Industrial Commodities

US stocks strengthened after big tech rallied today, driven in part by a resilient macroeconomic environment. US new home sales advanced to the fastest pace in more than a year in May, given the continued inventory shortage; prices for homes also increased, marking the third straight month of recovery. Likewise, confidence indicators jumped to early 2022 highs on greater optimism about the labour market and a possibility of a softer landing in the face of elevated interest rates. Meanwhile, ECB's Lagarde stated that the central bank would not be able to declare the end of the tightening cycle anytime soon. The forward swaps are still pricing in 51bps until the year-end, up from 47bps seen by the end of last week. The dollar weakened slightly, while the 2yr US Treasury yield held firm at 4.75%

Base metals saw a broad-based recovery today, offsetting most of yesterday's losses after China's Premier stated that growth picked up this quarter and that more stimulus is yet to come. This has bolstered the risk-on sentiment, but we struggle to see a prolonged price increase until macroeconomic figures begin to show a sustainable recovery out of the region. Iron ore saw protracted upside pressures, regaining much of last week's losses back to $113/mt. Aluminium jumped higher, strengthening to test the $2,200/t level; the metal settled at $2,195/t. Copper gains were marginal in comparison as the metal struggled above $8,400/t, closing at $8,363/t. Lead and zinc both settled higher at $2,096.50/t and $2,386.50/t, respectively.

Oil futures fluctuated, with WTI and Brent finding comfort at $68/bl and $73/bl. Likewise, gold and silver struggled to gain ground, holding above $1,915/oz and $22.90/oz, respectively.

Lme Metals Price And Volume 27062023

All price data is from 27.06.2023 as of 17:30

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