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

Daily Base Metals Report

Read disclaimer

US stocks gained on positive economic data yesterday. US GDP grew at 6.5% annualised rate in Q1 2021, in line with market expectations. US jobless claims fell by 13,000 to 553,000 in the week ending April 24th, as more people return to work. US pending home sales rose less than forecast in March on tight supply, another indicator pointing to a lack of available properties. Regardless of recent positive data, Powell dismissed concerns about price surge, implying that the economy will continue to run hot for a while. The dollar gained ground and the 10yr US Treasury yield edged up higher to test 1.67%. Meanwhile, in the EU, ECB warned that the economy will need more time until full recovery despite some positive data in recent months.

Activity on the LME was mixed yesterday, with lead and aluminium closing higher. Nickel was subject to moderate selling pressure in the second half of the day, testing the support level of $17,200/t and closing at $17,257/t. Copper extended its rally, topping $10,000/t, the highest level since 2011, as mines struggle to keep up with the growing demand, before selling off to close lower on the day at $9,885/t. Aluminium edged higher to test $2,433/t, before closing lower at $2,417/t; cash to 3-month spread tightened in to $4.25/t. Lead prices were higher on the day, closing at $2,116.50/t. Tin was range-bound, closing at $28,475/t.

Oil futures climbed to a six-week high as demand confidence supported the rally. The WTI and Brent gained to test $64.65/bl and $68.18/bl. Precious metals were on the back foot, with gold and silver edging down to $1,768.74/oz and $25.94/oz, respectively.

All price data is from 29.04.2021 as of 17:30

Don't forget to sign-up for next week's complimentary Metals Market Webinar!


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.