1. Metals Outlook
  2. Daily Base Metals Report

US stocks declined ahead of the Fed decision tomorrow, and continued gains in oil prices are supporting the narrative for a higher-for-longer interest rate environment. Yields have strengthened; in particular, the 5yr yield has reached the 2007 high of 4.50%, and the 2yr yield is now at 5.08%. The dollar remained above 105. Aside from the pause being priced in from the Fed, the market paid close attention to the Canadian inflation reading, which jumped higher to 4.0% y/y on the back of higher petrol prices, once again highlighting upwardly sticky inflation in the developed region. We expect that fears of inflation reacceleration will drive the sentiment into the year-end, as high energy prices feed through to pricing pressures. Elsewhere, according to the OECD's latest forecasts, the world economy is set to slow down given the continued increases in interest rates, easing into 2.7% in 2024.

Metals continued to soften today as markets assessed the impact of a higher interest rate environment. Aluminium softness was marginal today, struggling to break below the $2,200/t support level and remaining above it at $2,214/t. Copper continued to weaken for the third straight day, falling to $8,291/t. Nickel was once again seen testing prices below the $19,700/t level. Lead and zinc continued to give up some of the recent gains, closing lower at $2,220/t and $2,497.50/t, respectively.

Oil futures surged today, with WTI and Brent breaching the $92/bl and $95/bl levels, respectively. Gold and silver edged higher in the first half of the day but struggled to hold on to the gains, trading at $1,933/oz and $23.10/oz at the time of writing.

Lme Metals Price And Volume 19092023

All price data is from 19.09.2023 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.