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Daily Base Metals Report

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US stocks breached record highs once more as the higher-than-forecast increase in inflation drove the markets. Consumer prices rose by more than expected in March, up by 2.6% y/y; however, thought to be not fast enough to cause any significant changes to the Fed’s policy. From the vaccine front, the US recommended pausing the use of the J&J vaccine amid blood clot concerns while anticipating it has enough supply from other providers in the meantime. The 10yr US Treasury yield softened down to 1.6552%, and the dollar softened. Meanwhile, the UK goods trade seem to rebound from the initial Brexit shock, as exports to the EU increased by 47% m/m in February.

LME metal prices were on the front foot today, apart from tin, which closed lower on the day at $25,645/t. Aluminium prices were well supported and tested resistance at $2,295/t, prices closed lower at $2,293/t. Copper was well bid in the second half of the day, testing the resistance level of $8,953/t, before closing below at $8,899.50/t; the cash to 3-month spread widened out to -$2.50/t. Likewise, SHFE aluminium prices strengthened, closing at CNY65,880/mt; the next day, prices rallied on opening up to CNY66,120/mt. Nickel prices remained marginally supported above $16,100/t before closing at $16,161/t. Lead was seen marginally higher closing at $1,986.50/t.

Oil futures rose as OPEC expects demand to absorb supply, boosting hopes of demand recovery. WTI and Brent picked up to $60.31/bl and $63.90/bl. Precious metals were mostly higher, as silver surged up to test 25.40/oz, while gold edged up to $1,743.35/oz.

All price data is from 14.04.2021 as of 17:30


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