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

Daily Base Metals Report

Read disclaimer

US stocks fluctuated today on the back of mixed economic data. The Fed policy decision is due later today. Congress seemed to wrap up the $700bn bill, attempting to pass by the end of this week. US retail sales fell by 1.1% m/m, below estimates, highlighting the need for an additional boost to stimulate sales. The dollar softened and the 10yr US Treasuries yield edged up to 0.9229%. Elsewhere, the EU stated that the fishing rights remain the last major hurdle in Brexit negotiations. The pound strengthened.

Activity on the LME was mixed today, with only nickel and lead closing marginally lower. Copper was well bid today, but failed above $7,875/t and closed at $7,836/t. Aluminium was slightly firmer in the first half of the day but closed near the day’s lows at $2,035/t. Zinc and tin prices were stronger on the day, closing on the front foot at $2,832/t and $19,925/t respectively. Nickel tested the support level at $17,300/t but closed higher at $17,411/t; cash to 3-month spread widened out to -$57.25/t. Iron ore prices were higher on the day, closing at CNY1,000/mt.

Oil futures jumped to the highest levels since February on the back of stimulus optimism. At the time of writing, WTI and Brent trade at $47.71/bl and $50.96/bl. Precious metals were mixed, with gold and silver edging higher to $1,853.56/oz and $24.94/oz 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.