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Daily Base Metals Report

A Big Jump in Producers' Costs Takes Markets by Surprise

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Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Senior Research Analyst

Contact research Contact Industrial Commodities

Summary

  • Hotter-than-expected PPI data dampened CPI-driven optimism.
  • LME complex saw divergent moves.
  • Gold and silver declined near support levels.

Macro:
US equities opened lower on Thursday after breaking new records the previous day. The optimism seen following Tuesday’s softer-than-expected US CPI figure subsided after fresh data revealed rising costs for producers. The Producer Price Index (PPI) surprised to the upside, with July’s reading climbing to 3.3% YoY, marking a staggering 1% increase from June. The dollar and the 10-year US Treasury yield rose again, as expectations of continued Fed dovishness became less certain. The dollar index increased to 98.2, while the 10-year US Treasury yield approached 4.3%.

Base Metals
LME complex was mixed. Copper continued to weaken, falling to $9,766/t as it extended its decline from Tuesday highs. Aluminium moved in the opposite direction, rising to $2,619.5/t. Nickel saw the largest drop, sliding to $15,031/t. Tin reversed recent gains, retreating to $33,464/t as speculative interest faded. Lead was broadly unchanged at $1,989.5/t, while zinc rose to $2,849.5/t.

Precious Metals and Oil
Gold declined to $3335/oz, holding above the recent support level at $3330/oz. Silver gave back Wednesday’s gains, testing the support at $38.0/oz. Conversely, oil prices increased, with WTI approaching $64/bbl and Brent trading close to $67.0/bbl.

All price data is from 14.08.2025 as of 17:30

Disclaimer

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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.

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