1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read risk warning

Well, where to start…stocks have been relatively muted compared to commodity prices. The S&P 500 and DOW have gained 1.7% each at the time of writing, European indices were more moderated with gains less than 1%. The activity this afternoon was in the energy markets; reports circled that Saudi would be calling an OPEC+ meeting in response to low prices, this was superseded by a tweet from President Trump which suggested that the U.S., Russia, and Saudi Arabia would be cutting production by 10m barrels. Oil prices surged higher gain >30% at one point but trade at $30.55/bl and $25.25/bl for Brent and WTI respectively, marginally of the highs.

Metals prices were on the front foot today; copper prices firmed after one of China's primary smelter's issues a warning of low concentrate supply high sulfuric acid levels which could curtail refined production. Prices closed at $4,897/t with the spread weakening to $17.50 contango. Nickel and zinc prices were firmer, but gains were more moderate, closing at $11,261/t and $1,858/y respectively. Aluminium failed to close back above $1,500/t, closing at $1,491/t; cash to 3 remained under pressure, weakening to $33.40 contango.

Precious metals were bid today, but silver stole the show, gaining 3.53% to $14.45/oz. Gold gained 1.30% and trades at $1,612/oz at the time of writing and ETF demand is still strong.

Risk warning

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 Non-independent research

We will email you each time a new report has been published.

You might also be interested in...

Daily Report FX

A morning report covering fundamentals and technicals for USD, EUR, GBP, JPY, and CHF.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q2 2020

Our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how COVID-19 has impacted the metals market and outline what data points to look at to help navigate the next few months in the market.