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Daily Base Metals Report

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US stocks rallied today from yesterday’s lows amid good corporate earnings and economic data. US initial jobless claims fell by 67,000 in the week ending January 23rd, by more than expected, signalling that job cuts may be easing. Meanwhile, the US economy grew by 4% annualised rate in the last quarter of the year, while down from 33.4% growth in Q3, still in line with market expectations. The dollar weakened and the 10yr US Treasury yield strengthened up to 1.0534%. From the virus front, the US recorded the first case of the South African variant, while Germany decided to exclude people aged 65 and above from vaccinations using AstraZeneca, as it casts doubts on its effectiveness.

Sentiment on the LME market was mixed once again. Aluminium prices were softer today, testing support at $1,970/t; however, the market held above this level to close at $1,984.50/t. Nickel prices failed into resistance at $17,950/t, and the market closed at $17,800/t. Copper prices were supported above $7,700/t and closed at $7,873/t, the spread tightened slightly into $3.75/t backwardation. Tin and zinc continued to move higher, closing at $22,995/t and $2,592.50/t respectively.

Oil futures edged lower after a rise seen in the US equities. At the time of writing, WTI and Brent trade at $52.47/bl and $55.60/bl. Precious metals were seen marginally lower, with gold and silver down to $1,842.20/oz and$25.90/oz respectively.


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