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

Daily Base Metals Report

Read disclaimer

US stocks experienced another day of positive growth today on the back of hopes of stimulus aid once Biden announces his plans later today. Yesterday, Trump became the first US president to be impeached twice in one term; however, a trial is still in the hands of the Senate. US jobless claims rose by most since March, up to 965,000 in the week ending January 9th, pointing to a continued labour market pain from lockdown restrictions. Meanwhile, the US mortgage rates picked up to a two-month high, the biggest jump since March on the back of growing Treasury yields. The dollar weakened out to 90.235, and the 10yr US Treasury yield picked up higher to 1.0968%. Asian stocks edged higher after the US decided against banning investment opportunities into Chinese companies. On the virus front, China recorded its first-ever COVID-19 related death since April as the number of cases started to grow.

Activity on the LME was mixed today, with copper and nickel closing higher. Lead was subject to strong selling pressure in the second half of the day, falling below the key support level of $2,035/t and closing at $2,030/t; cash to 3-month spread widened into -$17.35/t. Aluminium prices were softer, closing at $2,005.50/t. Zinc gave back its recent gains, closing on the back foot at $2,757/t. Nickel broke resistance $18,200/t and closed higher at $18,281/t. Copper edged higher to test $8,075/t, on the back of China hitting trade surplus record in December, before closing lower at $8,048.50/t. Tin prices were marginally unchanged, closing at $21,007/t.

Oil futures fluctuated as OPEC signalled it is on track to deplete its oil inventories. At the time of writing, WTI and Brent trade at $52.86/bl and $55.73/bl. Precious metals were mixed, with gold declining down to $1,847.80/oz and silver up to $25.68/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. This week we focus on USDSGD and whether the SDG recent strength is sustainable given the deteriorating global outlook. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.