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

Daily Base Metals Report

Read disclaimer

US stocks declined yesterday on the back of mixed corporate earnings results. With the stocks near all-time highs, investors are paying attention to what is meant to be one of the best corporate earnings seasons in two years. J&J vaccine posted stronger-than-expected sales in the first quarter despite the vaccine distribution setback in the US, as it awaits the final health regulator ruling. The dollar found support at 90.86, and the 10yr Treasury yield softened back to 1.57%. Meanwhile, in the UK, the labour market weakened unexpectedly in March, with company payrolls falling for the first time since December; the jobless rate fell to 4.9%.

Activity on the LME was mostly negative yesterday, with only tin closing higher on the day. Zinc was subject to strong selling pressure, falling below the key support level of $2,820/t before closing lower at $2,814/t. Copper and aluminium prices were softer, closing at $9,322/t and at $2,309/t, respectively. Lead was supported at $2,022/t and closed at $2,030/t. Nickel was mainly range-bound in the first half of the day before selling off to test $16,000/t level; the metal closed at $16,038/t. Nickel cash to 3-month spread tightened up to -$45.00/t. Iron ore prices strengthened further to close at CNY1,085/mt.

Oil futures topped monthly highs before retreating with broader market decline. WTI and Brent traded down to $62.5/bl, and $66.51/bl. Precious metals were marginally higher, with gold and silver trading up to $1,774.56/oz and $25.86/oz, respectively.

All price data is from 20.04.2021 as of 17:30


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.

Weekly Report FX Options

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.