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

Daily Base Metals Report

Read disclaimer

Stocks in the U.S. have found support today as investors continue to believe the virus is levelling off and becoming under control, however, earnings are a dark cloud for markets. We believe the market will continue to look at virus cases and fatalities for direction. The looming recession could trigger a correction in the long run. Oil prices have softened today, down 5% at the time of writing. This follows the OPEC+ deal which was finalised over the weekend, but the market does not believe the cut has gone far enough.

Prices on the LME continue to rise over fears of supply loss. Estimates for supply loss ranges from 15-25% of global supply. Production at Antamina is expected to re-start in 2 weeks while Cerro Verde is running at limited capacity. Copper prices gained 3% to close on the front foot at $5,163/t with the cash to 3 month remained in contango at $29/t, Tin prices have also found support, closing up $15,457/t. Nickel prices were supported through $11,800/t to $11,889/t, the spreads remain soft at -$78.25/t. Aluminium was also supported today breaking back above $1,500/t to close on the front foot at $1,503.50/t. Zinc and Lead broke above key resistance today with zinc closing above $1,900/t at $1,922.50/t but lead failed above resistance at $1,700/t at $1,695/t.

Gold continued to be well bid to $1,735.60/oz as governments and central banks increase stimulus and investors look to safe havens. Silver prices were also well bid today to $15.75/oz.

Disclaimer

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. This week we focus on USDSGD and whether the SDG recent strength is sustainable given the deteriorating global outlook. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.