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

Daily Base Metals Report

Read disclaimer

Equity markets were firmly on the front foot today in Europe and the U.S. indices, which are quickly approaching all-time highs. Energy and Industry stocks have done particularly well. Tensions between the U.S. and China remain elevated, as Donald Trump looks to ban Tik Tok and Wechat. China's recent retaliation to America's actions suggests an attempt to cool tensions. In the U.K., jobs data is worsening as we saw a decline in employment by 220,000 during Q2. The Office for National Statistics suggests that July is down 730,000 compared from March. 

Sentiment on the LME was mixed again today, lead was the big mover as primary output fell due to maintenance at smelters. Lead prices were well supported below $1,900/t to close at $1,960.5/t, the cash to 3-month spread has not tightened. Zinc bid below $2,400/t and closed at on the front foot at $2,410/t. Copper consolidated today after yesterday's gains, the market closed at $6,386/t. Nickel prices were also stronger, after appetite for prices below $14,090/t to close at $14,350/t. Ali closed at $1,786/t after selling off to test appetite at $1,750/t. 

Precious metals declined today, as we saw gold, and silver ETFs fall sharply. Silver is down 8.5% at the time of writing and trades at $26.65, as gold is down 4.16% trading at $1,942/t. Brent and WTI prices have consolidated today, trading at $45.02/bl and $42.09/bl, respectively. 


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.

FX Monthly Report July 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. Cryptocurrencies are the focus of this month's FX Monthly report. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.

Quarterly Metals Report – Q3 2021

COVID cases are rising across the globe as the delta variant spreads, this is causing some nervousness in financial markets, especially with the higher inflation rhetoric. Commodity prices have fallen since the Fed changed their tune inflation, the dollar has stabilised which has also been a headwind to prices. The summer months are traditionally quieter for metals demand which could prompt metals to consolidate. If the delta variant continues to spread, we may see higher levels of stimulus for longer. As things stand stimulus levels are set to be tapered and this could be brought forward if inflation remains high. We expect markets to remain volatile but on lower volume through the summer months.