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

Daily Base Metals Report

Read disclaimer

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

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.

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.

FX Monthly Report June 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. Precious metals are the focus of this month's FX Monthly report. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Quarterly Metals Report – Q2 2021

Metal prices have rallied so far in 2021, in line with improving economic data and risk appetite, largely due to improving vaccination rates across the globe. Europe was slow to roll out vaccines, and as a result, has seen lower economic growth and weaker metals demand. However, the disconnect between supply and demand is set to continue in the near term as supply struggles to keep up. The global chip shortage is having an impact on the auto market, and there is no quick fix to this problem. Physical traders in China are reluctant to pay the high prices, but the fund community remain heavily involved. We expect metal prices to remain supported in Q2, but we are seeing early signs that supply is responding, but this will be more of a factor in H2 2021.