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Daily Base Metals Report

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US stocks continued to decline from all-time highs as worse-than-expected economic data comes ahead of the key Fed Reserve meeting. US retail sales fall by 1.3% in May, below market expectations, after stimulus-spurred spending softened. US producer prices accelerated in May, as material prices and shortages led to higher prices being passed on to consumers. Economists expect an interest rate increase in 2023, as the bank is unlikely to scale bond purchases until later this year. The dollar surged higher and the 10yr US Treasury yield continued to gain ground towards 1.5%. Elsewhere, UK payrolls surged the most on record in May, while the economy last stage of reopening was delayed by four weeks, as cases climb.

Metals on the LME tumbled yesterday ahead of this week’s Fed Reserve meeting. Copper rally stalled, plunging as much as 4.00%, and the metal tested support $9,511/t before closing higher at $9,569.50/t. Nickel was also subject to strong selling pressure, falling below the key support level of $17,900/t before closing lower at $17,739/t. Nickel cash to 3-month spread widened out to -$35.00/t. Aluminium prices were softer, closing at $2,467/t. Tin and zinc fluctuated throughout the day, before closing marginally lower at $31,463/t and $3,029/t, respectively. Iron ore prices weakened further to close at CNY1,352/mt.

Oil futures picked up sharply, with Brent hitting the highest of $73.90/bl level since 2018, as Glencore sees demand returning to normal by Q3 2021. WTI traded at $71.76/bl. Precious metals were mostly down, with gold and silver softening into $1,859.27/oz and $27.52/oz, respectively.

All price data is from 15.06.2021 as of 17:30


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