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Daily Base Metals Report

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The chance of another round of stimulus from the U.S. has buoyed equity markets. Uncertainty remains, and we think the market may have moved too quickly. There is still a significant downside, but U.S. equities are up 2%, gold has also recovered from earlier losses to and trades at $1,650.2/oz. The gold spot to futures has eased slightly to $30/oz.

Copper and zinc saw large inflows of material, causing a decline in prices by $31.5 and $13.5 respectively to close at $5,002.50/t and $1,923/t respectively. Both cash to 3 spreads have consolidated today, but both remain in contango. Lead prices declined today to close at $1,712.5/t, according to SMM primary lead production gained 12% m/m as smelter utilisation rates increased following maintenance and the coronavirus. Nickel prices edged higher today closing at $11,507/t, the cash to 3 spread is still in contango at $73.5.

Crude oil inventories increased by 15.17m barrels, but prices increased as investors have their eyes on a production cut from major producers: front-month Brent and WTI trading at $32.45/bl and 24.38/bl respectively.

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.

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