1. Metals Outlook
  2. Daily Base Metals Report

US stocks declined today as lacklustre economic data weighed on global risk sentiment. The US trade deficit shrank in June to $2.8bn – the lowest level since 20221, reflecting moderating consumer demand for merchandise. The dollar edged higher, and the 10yr US Treasury yield is now back at 4.00%. Elsewhere, Italy’s tax on the industry’s profits is said to have erased as much as $11bn from the value of the country’s banks, fuelling further concerns surrounding the banking sector security.

Chinese commodities weakened after a disappointing array of data releases. In particular, the country’s trade plunged in July as slowing global demand for goods weighed on total exports, while domestic pressures stifled the flow of imports into the economy. Meanwhile, ahead of the CPI data out tomorrow, signs are appearing to suggest that producers are now cutting prices from a year ago to adjust for lower demand. CPI is expected to have contracted by 0.4% y/y in July, the first yearly decline since early 2021. Copper breached the $8,400/t level during the day but struggled below $8,350/t as it closed slightly above it at $8,347.50/t. Nickel fell for the fifth straight day, testing the $21,000/t support level. Aluminium’s support at $2,200/t held firm, as the metal closed at $2,200.50/t at the time of writing. Lead and zinc both weakened to close at $2,125/t and $2,456/t, respectively.

Oil futures fluctuated around the $81/bl and $85/bl levels for WTI and Brent, respectively. Gold and silver continued to weaken to $1,927/oz and $22.80/oz, respectively.

Lme Metals Price And Volume 08082023

All price data is from 08.08.2023 as of 17:30


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