1. Metals Outlook
  2. Daily Base Metals Report

US stocks opened lower today following a higher-than-expected Producer Price Index (PPI) report, which sent the dollar soaring to the 103.4 mark. The PPI for February rose to 1.6% YoY, up from the 0.9% YoY observed in the previous month, surpassing the forecasted 1.2% YoY increase. The higher-than-expected increase in prices received by domestic producers for their output suggests that inflation could remain sticky in the near term. Investors pushed back their expectations for the start of monetary easing again, now with a 65% chance of a rate cut in June, leading the 10-year US Treasury yield to jump higher, almost touching 4.3%.

Base metals have edged slightly lower today, correcting slightly from yesterday’s gains. In particular, copper prices softened but managed to hold firmly above the trend resistance level at $8,835/t. If prices struggle below this level in the near term, we could see further upside in copper performance to $9,000/t, continuing the recent months’ trend. Likewise, aluminium edged lower but lacked appetite below the $2,250/t level, closing at $2,251.50/t. Lead and zinc weakened to $2,158/t and $2,548/t, respectively. Tin was the only metal that strengthened today, finding a new support level at $28,000/t. The trend is being driven by a longer-term narrative, with continued limits from Myanmar creating a fundamentally tight tin market. Given no changes to the supply story, we expect prices to edge higher in the coming months.

The prices of precious metals took a downturn following the midday release of US data, causing gold and silver to drop to $2,158/oz and $24.8/oz, respectively. Conversely, oil prices gained momentum after the release of the latest International Energy Agency report, which projects a higher-than-anticipated increase in global oil demand for 2024, raising concerns about a potential supply shortage. WTI jumped to the highest level this year, trading at $81.15/bl, while Brent crude increased to $85.3/bl.

Copper 14032024

Lme Metals Price And Volume 14032024

All price data is from 14.03.2024 as of 17:30


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