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Daily Base Metals Report

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US stocks have gained ground posting a two-week high today on the back of newfound support for another round of stimulus checks to Americans. Manufacturing data today showed that activity in America is improving, to 49.6, however, is yet to cross into expansionary territory. Treasuries were little changed, and the dollar retreated. Investors remain cautious regarding the situation between America and China; however, the recent statement by President Trump suggesting that the deal is fully intact injected appetite back into the markets. The UK announced social distancing measures to be reduced from July 4th.

LME metals have been mixed, with aluminium, zinc and lead lower on the day. Copper prices continued to firm breaking above $5,900/t to close at $5,905/t, the cash to 3-month spread has tightened once again to -$13.00/t. Nickel was bid below $12,750/t and closed just off the day’s high at $12,721/t. Aluminium traded lower to the $1,590/t support level as Trump poised to impose a 10% tariff on aluminium from Canada and closed at $1,595/t. Zinc lost the most ground, breaking below the key support level of $2,050/t to close at $2,040/t. Lead was weaker today, closing at $1,747/t. Tin remained range-bound, closing at $16,896/t.

Oil extended its rally today amid Trump assuring of the trade deal with China. At the time of writing, WTI and Brent are at $40.77/bl and $43.17/bl respectively. Gold and silver were stronger, gaining up to $1,767.57/oz and $17.96/oz respectively.

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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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