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Daily Base Metals Report

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Global stocks markets fluctuated today amid vaccine hopes mixed with strengthening lockdowns across the world. New York has shut down schools, South Australia began one of its toughest lockdowns, and Japan has set the high virus alert in Tokyo. Meanwhile, a report published by IMF warns that recovery will remain bumpy and cautions economic from withdrawing stimulus prematurely. US initial jobless claimed increased by 31,000 in the week ending November 14th, the first increase in five weeks, while remaining before the pre-virus levels. The median down payment for a single-family US home has picked up in Q3, amid tightening credit standards and rising prices. The dollar strengthened up to 92.495 and the 10yr yield on US Treasuries weakened out to 0.8456%.

Activity on the LME was mixed today, with aluminium and tin closing lower. Lead was well bid but failed above $1,990/t to close at $1,978.50/t. Nickel was slightly firmer and managed to close just off the day’s highs at $15,834/t. Zinc prices were range-bound but closed on the front foot at $2,759/t. Conversely, copper was also range-bound but closed lower on the day at $7,093/t. Aluminium tested the resistance level at $1,995/t but closed lower at $1,992.50/t. Most spreads have tightened, with only nickel cash to 3-month spread widening out to -$50.00/t.

Oil futures dipped today on the back of sluggish US economic data, with WTI and Brent falling to $41.50/bl and $43.96/bl. Gold continued to drop for the fourth day in a row, as ETF funds suffered a withdrawal of under 1m this week. At the time of writing, gold and silver trade ta $1,860.66/oz and $23.90/oz respectively.  


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