1. Metals Outlook
  2. Daily Base Metals Report

US stocks’ moves were lacklustre today as markets braced for the Fed decision tomorrow, with policymakers expected to deliver 25bps worth of hikes. If the hike materialises, we expect investors to start pricing in the outlook for the year-end decisions, and Fed’s subsequent minutes will be key in assessing the pathway for the central bank. We are now entering the peak of the earnings season, and most of the companies that have reported so far have outperformed according to market expectations, creating a solid base for a “soft landing” for the US economy. Indeed, consumer confidence strengthened to a 2-year high of 117 in June on the back of a solid job market and easing inflationary pressures. The dollar remained at 101.40, and the 10yr US Treasury yield held steady.

Solid growth was seen across all base metals today after Chinese leaders pledged more support for the economy at this week’s Politburo meeting. This, alongside the last Fed hike, would help solidify longer-term support levels. However, we do not suspect the impact to be long-lasting, and market focus should shift back to the fundamental and macroeconomic picture in the near term, which could bring prices slightly lower from this week’s highs. As of today, construction-heavy materials benefitted the most from the news, with copper, in particular, gaining more than $150/t on the day, breaking above $8,600/t to close at $8,673.50/t. Likewise, nickel surged above the $22,000/t resistance level to June highs of $22,395/t. Zinc gained ground but struggled to break above the robust support of $2,500/t, closing at $2,488/t. Aluminium closed at $2,240/t. Iron ore remained the primary beneficiary of China’s policy news, gaining ground above $115/mt.

Oil futures held on to three-month highs of $79/bl and $83/bl for WTI and Brent, respectively. Precious metals fluctuated but edged higher in anticipation of the last hike of this tightening cycle from the Fed. Gold and silver are now trading at $1,964/oz and $24.60/oz, respectively.

Lme Metals Price And Volume 25072023

All price data is from 25.07.2023 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.