1. Metals Outlook
  2. Daily Base Metals Report

US stocks remained broadly unchanged on Friday after tech shares’ gains cooled. The dollar continues to pare gains, and the 10yr US Treasury yield rose back up to 3.82%. Next week is filled with key central bank meetings, and while the market is pricing in further tightness from the BOE and the ECB, the outlook for the Fed remains uncertain into the year-end. Meanwhile, the yen tumbled to 141.72 against the dollar after the inflation core reading advanced in June, growing by 3.3%, matching consensus. Traders now believe there is a smaller chance of a hawkish move from the BOJ and the possibility of the yield curve control measures.

Base metals continued to shed last week’s gains into Friday after a stronger dollar brought the complex back to robust support levels. Aluminium remained above $2,200/t while copper retested the resistance of $8,500/t, struggling above it to close at $8,4452/t. Meanwhile, lead jumped higher, closing at mid-June highs of $2,139.50/t. Zinc weakened to $2,372/t. As a result, zinc to lead spread has fallen to June 2020 lows of $235.50/t, further highlighting the pressure on construction-heavy materials. Tin closed at $28,494/t.

Oil headed for a fourth weekly gain amid signs that global markets are tightening; WTI and Brent are now trading at $76/bl and $80/bl. Gold slipped today but still closed the week slightly higher at $1,961/oz.

Lme Metals Price And Volume 21072023

All price data is from 21.07.2023 as of 17:30

Disclaimer

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.