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Daily Base Metals Report

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Global equity markets have trended higher on signs of a fast-tracking of the US vaccine. Both S&P 500 and Nasdaq touched new highs. Asian stocks advanced higher after the White House stated that its ban on WeChat will not be as broad as previously expected. Eyes now turn to the Fed’s annual Economic Policy Symposium on Tuesday, where the new long-term inflationary strategy will be the main focus.

Risk appetite improved for the LME metals today, only with zinc and tin lower on the day. Aluminium prices were well-supported above $1,765/t and closed at $1,770.50/t, the cash to 3-month spread has widened into -$40.34/t. Copper trended higher to test the resistance at $6,580/t before closing below at $6,516/t. Nickel rallied to $14,950/t, the highest since November 2019, on the back of concerns surrounding tightening supplies, as rising Chinese demand for stainless steel adds to the worries. Nickel closed at $14,926/t. Tin lost the most ground, breaking below the key support level of $17,500/t to close at $17,310/t. Zinc was weaker today, closing at $2,445.50/t. Iron ore futures slid to close at CNY838/mt as Fortescue Metals Group, one of the biggest exporters, reported record shipments.

Oil futures rose as two storms heading towards the US Gold Coast location urged producers to shut nearly 60% of offshore production. At the time of writing, WTI and Brent trade at $42.48/bl and $44.84/bl. Precious metals declined today, with gold and silver down to $1,933.88/oz and $26.64/oz respectively.


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