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Daily Base Metals Report

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US stocks hit record-highs as economic recovery optimism swept across the market. The World and Emerging Market MSCI Index continued to rally, pushing the gains to the largest level in 17 years. The dollar strengthened and the 10yr US Treasury yield picked up higher to 1.2804%. Meanwhile, the UK government identified an extra 1.7m people at serious risk of coronavirus, complicating a smooth vaccine rollout. At the same time, IFS data showed that London lost the biggest number of jobs in the UK in the period from February to December 2020, adding concerns to the economy that still remains under strict lockdown measures.

Activity on the LME was mixed today, with lead, tin and zinc closing lower. Nickel was well bid in the second half of the day but failed above $18,850/t to close at $18,814/t. Aluminium was slightly firmer and managed to close moderately higher at $2,086.50/t. Copper climbed up higher to $8,437/t – the highest level since 2012, and closed at $8,405.50/t. Zinc and tin prices were on the back foot and closed at $2,827.50/t and $24,250/t respectively. Spreads have mostly weakened, with nickel tightening up to -$41.75/t. Tin cash to 3-month spread has widened back out from a jump yesterday of $5,240/t to $2,880/t today.

Oil futures held up near the 13-month high on continued supply concerns, pushing the WTI and Brent up to $59.78/bl and $63.10/bl. Precious metals were mostly seen lower, with gold and silver trading at $1,794.76/oz and $27.17/oz respectively.

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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.

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