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Daily Base Metals Report

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US stocks continued to rise yesterday, led by tech shares, as investors took on more of a risk-on sentiment. The 10yr US Treasury yield fluctuated ahead of the auction and the dollar was marginally stronger. US core CPI rose by less than expected in February, highlighting that the inflation pressures remain tame. Meanwhile, China’s credit expansion slowed less-than-forecast in February despite traditional holidays, as demand for corporate loans remained robust. On the vaccine front, the EU exported 34m COVID-19 doses to other countries, despite recent tensions surrounding the vaccine export ban.

LME metals have been mixed, with zinc and lead lower on the day. Copper prices edged higher today, supported above $8,850/t to close at $8,861.50/t, the cash to 3-month spread has tightened up to $21.50/t. Nickel was well bid in the first half of the day, testing $16,300/t but closed lower at $16,050/t. Aluminium was mostly range-bound and broke through the support level at $2,170/t before closing at $2,168/t. Zinc traded lower to close on the back foot below at $2,764/t. Lead was also weaker today, closing at $1,946.50/t.

Oil futures fell yesterday amid rising US supplies, with WTI and Brent seen falling to $63.45/bl and $67.02/bl. Gold and silver were seen higher, edging up to $1,719.37/oz and $26.00/oz respectively.

All price data is from 10.03.2021 as of 17:30

Disclaimer

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