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Daily Base Metals Report

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US stocks fluctuated yesterday as investors awaited the policy decision from the Fed. The Fed stated that economic recovery means bringing the reduction of policy support, with anticipation of two rate hikes by the end of 2023. The dollar was marginally stronger and the 10yr US Treasury yield remained broadly unchanged. The pound gained against the dollar as inflation surged unexpectedly by 2.1% y/y, past the BoE target for the first time in almost two years. Meanwhile, UK GDP rose by 2.3% m/m in April as the shops and the service industry reopened. China’s industrial production increased by 8.8% y/y in May, while retail sales grew 4.5%, about half of its pre-pandemic rate.

Activity on the LME was mixed today with aluminium and copper closing higher; meanwhile, China ordered state firms to curb overseas commodity exposure to help control soaring metals’ prices. Nickel was subject to selling pressure, whilst support at the $17,425/t level held firm and the metals closed higher at $17,649/t. Tin prices were softer, closing at $31,215/t. Zinc gave back its recent gains, closing on the back foot at $3,024/t; cash to 3-month spread tightened out to -$3.50/t. Aluminium edged higher today to test $2,476/t, closing higher at $2,469.50/t. Copper prices were higher on the day, closing at $9,667/t.

Oil futures continued to beat multi-year highs, with WTI and Brent trade around $72.33/bl and $72.50/bl. Precious metals were mostly higher, with gold and silver edging up to $1,860.18/oz and $27.73/oz, respectively.

All price data is from 16/06/2021 as of 17:30


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