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

Daily Base Metals Report

Read disclaimer

US stocks continued to decline, falling for the longest period since December on the back of moderate corporate earnings. The European stocks advanced, while the euro strengthened after better-than-expected Germany’s manufacturing PMI performance in February. HIS Markit US price gauge reached the 2009 highs in February, adding to the concerns of accelerating inflation. The US existing-home sales rose unexpectedly in January, up to a three-month high of 0.6% m/m, as low borrowing rates spurred buying demand. The dollar weakened, and 10yr US Treasury yield picked to a 1-year high of 1.3414%. Elsewhere, UK retail sales continued to decline, falling more than twice as fast as expected in January. The pound surged past $1.40 – the 2018 level, as rapid vaccine rollout drives market confidence.

Metals markets were mostly higher on Friday, with only aluminium down on the day. Zinc struggled to gain a footing in the first half of the day but closed higher on the day at $2,881/t. Tin prices gained the most, with the market testing $26,360/t to close at $26,215/t. Copper was next in line, increasing by 5.11%, testing the resistance at $9,000/t – a 9-year high, among concerns of a historic shortage, and closed lower near the day’s highs at $8,909.50/t. Nickel was stronger today and failed above $19,800/t, leading to a close at $19,588/t; the spread continued to tighten and settled at -$22.50/t. Aluminium was range-bound and closed lower on the day at $2,131.50/t.

Oil futures fluctuated as the freeze in Texas continues to support oil prices. At the time of writing, WTI and Brent trade $59.96/bl and $63.65/bl Precious metals were all seen higher, with gold and silver edging up to $1,791.79/oz and $27.39/oz, respectively.

*All price data is from 18.02.2021 as of 17:30


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.

Quarterly Metals Report – Q1 2021

Chinese economic data continued to recover yet at a more moderate rate, underpinning the performance of base and ferrous metals. Vaccination rates will remain key, but Chinese New Year is likely to keep growth more subdued for the majority of February. In this report, our analysts provide fundamental and technical analysis and forecasts for base and precious metals, iron ore and steel. We assess how this past quarter impacted the metals market and outline what data points to look at to help navigate the next few months in the market.