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Daily Base Metals Report

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US stocks fluctuated yesterday after reaching record highs last week. US job openings reached 2-year high in February, led by industries hit the hardest during the pandemic. Meanwhile, US service providers experienced the fastest growth on record in March as businesses continue to recover. The 10yr US Treasury yield softened and the dollar weakened. The IMF upgraded its global growth forecasts once again to indicate the faster-than-expected recovery worldwide.

LME metal prices were on the front foot today, with nickel paving the way, closing higher on the day at $16,740/t. Aluminium prices were well supported and tested resistance at $2,270/t and closed lower at $2,268/t. Copper was well bid in the second half of the day, testing the resistance level of $9,050/t, before closing below at $9,047/t; the cash to 3-month spread tightened up to $6.75/t. SHFE copper prices also gained footing, closing at CNY67,230/mt. Zinc prices remained supported above $2,820/t before closing at $2,824/t. Iron ore was range-bound but closed higher on the day at CNY977/mt.

Oil futures climbed as a stronger growth outlook outweighs virus concerns. WTI and Brent edged up higher to $59.87/bl and $63.29/bl. Precious metals were all stronger, with gold and silver $1,744.61/oz and $25.26/oz respectively.

All price data is from 06.04.2021 as of 17:30.


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