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Daily Base Metals Report

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US stocks climbed yesterday, as steady Treasury yields helped to boost sentiment. US IHS price gauges advanced to multi-year highs in March as shortages of materials and continued disruption to the supply chain added to inflation concerns. Meanwhile, US durable goods orders declined unexpectedly in February, the first decline since April, highlighting a pause in manufacturing recovery. The dollar was marginally higher, and the 10yr US Treasury yield steadied above 1.60%. The EU revealed the plans to extend vaccine export block, adding to escalating tensions.

LME metals have been mixed, with nickel and aluminium higher on the day. Copper prices edged lower yesterday, testing the $8,900/t level to close at $8,977.50/t, the cash to 3-month spread has tightened up to $1.00/t. Zinc was supported at $2,800/t and closed just above the day’s lows at $2,800.50/t. Lead was weaker today, closing at $1,939.50/t. Nickel was mostly range-bound and tested the resistance level at $16,250/t before closing at $16,190/t. Aluminium traded higher to the $2,260/t resistance level but closed on the back foot below at $2,258/t.

Oil futures jumped on the news of the Suez Canal being blocked by a container ship. WTI and Brent rallied up to $60.99/bl and $64.14/bl. Precious metals were all seen higher, with gold and silver edging up to $1,732.32/oz and $25.15/oz, respectively.

All price data is from 24.03.2021 as of 17:30

Disclaimer

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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