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Daily Base Metals Report

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Global stocks slipped today, as a caution about renewed coronavirus lockdown took hold again. The dollar gained, and the yuan briefly strengthened through 7 per dollar for the first time since mid-March. Treasuries gained ground. The White House wants Congress to pass another stimulus package next month before August Congress recess. Germany’s industrial production increased below forecast to 7.8% m/m in May, highlighting the hurdles to the economic recovery.

Metals on the LME posted another day of positive gains, only with tin lower on the day. Copper was well bid, closing below the key resistance level of $6,200/t at $6,188/t. Lead gained ground closer to the end of the business day, testing the $1,830/t resistance level and closing just below at $1,828.5/t. The cash to 3-month spread tightened into -$11.25/t. Nickel prices were firmer today, closing at $13,469/t. Tin was marginally weaker; breaking below the key support level of $17,000/t and closing at $16,970/t. Aluminium remained range-bound and closed at $1,634/t.

Oil futures edged lower before finding strength in the second half of the day as US gasoline stockpiles were seen expanding. At the time of writing, WTI and Brent trade at $40.78/bl and $43.33/bl respectively. Gold and silver prices were higher on the day, trading at $1,796.22/oz and $18.33/oz.


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