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Daily Base Metals Report

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US stocks fell yesterday, despite positive economic data, as investors once again weighed on the prospect of rising inflationary pressures. Additionally, the prevailing concerns surrounding the semiconductor shortages stoked this debate further. US initial jobless claims continue to fall to pandemic lows, with the most recent figure down to 498,000 on the week ending May 1st. Meanwhile, US mortgage rates fell to the lowest level in three months, increasing the buying power for Americans. The dollar softened, while the 10yr US Treasury yield continued to decline. The employment report is out today, and it is expected that the US added about 1m jobs in April, below what was seen in March.

LME metal prices were well bid today as risk appetite re-emerged. Aluminium prices were firmer, heading for the third straight gain, however lack of appetite for prices above $2,490/t triggered a close at $2,488.50/t. Copper prices broke through the resistance of $10,100/t but closed lower at $10,092/t. Zinc prices were also higher and closed at $2,943.50/t; cash to 3m spreads tightened up to -$13.75/t. Lead prices opened on the front foot today, breaking through the key resistance level of $2,210/t to close at $2,218/t. Nickel prices were down on the day, closing at $17,937/t. SGX iron ore rallied, breaking above $196/mt for the first time, to close at $195.47/mt.

Oil futures slipped as the prevailing coronavirus crisis in countries such as India continues to complicate the demand outlook. WTI and Brent fell down to $65.22/bl and $68.63/bl. Precious metals were mostly higher, with silver and gold rallying to $27.37/oz and $1,815.71/oz, as the dollar and Treasury yields continued to decline.

All price data is from 06.05.2021 as of 17:30


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