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Daily Base Metals Report

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US stocks slumped yesterday on the back of some risk-off sentiment. US trade gap widened to a new record in March as input prices continued to rise, passing the costs to consumers. Meanwhile, Treasury Secretary Yellen stated that rates may rise at one point to stop the economy from overheating. Regardless, the 10yr US Treasury yield fell to a week’s low, while the dollar rallied. From the manufacturing side, the US performance fell short of expectations in April, at 60.7, while Asia powered ahead, despite some cooling seeing in China.

Metals on the LME have all traded higher yesterday, despite a jump in the dollar. Lead gained the most ground, the 12th consecutive day of gains, testing the November 2019 level at $2,200/t but closing below at $2,198.50/t. Cash to 3-month spread strengthened into- $14.71/t. Next in line was tin, closing below the key resistance level of $29,200/t at $28,990/t. Copper briefly topped $9,970/t; however, resistance at that level triggered a close at $9,966/t. Aluminium prices were supported above $2,430/t, closing at $2,428/t.

Oil futures gained ground, as OPEC decided to keep production steady in April, ahead of the additional supply planned this month. WTI and Brent consolidated, reaching $65.63/bl and $68.81/bl respectively. Precious metals were on the back foot; gold and silver fell to $1,776.81/oz and $26.38/oz.

All price data is from 04.05.2021 as of 17:30

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