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Daily Base Metals Report

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US stocks dropped from their all-time highs on the back of concerns of fading prospects for the US stimulus bill. US job openings rose unexpectedly to 6.65m in October, highlighting a gradual improvement in the labour market conditions before the lockdown measures were re-introduced. The dollar picked up to 91.081 and the 10yr yield on US Treasuries strengthened up to 0.9460%. The pound rallied to 0.7472 to the dollar ahead of Brexit talks. Boris Johnson has said that no prime minister could accept the EU’s demands as he heads to Brussels to meet with the European Commission. China state-backed COVID-19 vaccine has shown to protect 86% of people. Yuan weakened significantly by the day’s close, touching the 6.5316 to the dollar level last seen in June 2018. The FDA meets tomorrow to discuss the vaccine by Pfizer/BioNtech.

Prices on the LME were seen higher today as risk appetite prompted the market. Zinc prices traded up to $2,867/t, but resistance at this level triggered a close lower at $2,855.50/t. Zinc cash to 3-months widened out to -$12.50/t. Aluminium saw the strongest gains today, edging higher to $2,046/t to close marginally below at $2,035/t. SHF aluminium, however, closed on the back foot at CNY15,961/mt. Nickel prices also strengthened today; prices closed near the day’s high at $16,703/t. Copper was supported in the first half of the day but edged lower down to close at $7,723/t. Lead range-bound, closing marginally lower on the day at $2,109/t.

Oil strengthened after the US crude stockpiles grew the most since April this year. At the time of writing, WTI and Brent trade at $45.43/bl and $48.78/bl. Precious metals traded lower today, with gold and silver edging down to $1,834.31/oz and $24.08/oz respectively.


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