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

Daily Base Metals Report

Read disclaimer

US stocks finished the week on the back foot, falling for the fourth straight day, in response to surprise hawkishness by the Fed. The dollar touched two-month highs, while the 10yr US Treasury yield softened 1.4566%; the yield spread between 5- and 30-yr Treasuries sold off to touch November lows. The pound tumbled to a 2-month low as a surge of COVID-19 cases dented confidence in the economy’s recovery. UK retail sales fell unexpectedly in May as the reopening of the service industry shifted consumer spending away from supermarkets. Meanwhile, Japan left the interest rates unchanged and extended support to the economy.

All metals on the LME closed lower today as the stronger dollar hit sentiment in the market. Copper prices sold off once again and tested appetite around $9,110/t and closed at $9,145.50/t. Tin weakened the most, down 3.73%, breaching support at $29,500/t to close higher at $29,862/t. Aluminium and nickel prices were also lower, closing at $2,385/t and $17,154/t respectively. Zinc closed at $2,822.50/t and cash to 3-month spread weakened slightly to -$13.90/t. Lead was the only one higher on the day, closing at $2,157.50/t.

Oil futures fell in the first half of the day, before recovering sharply recovering, with WTI and Brent edging up to $71.86/bl and $73.63/bl. Precious metals were mixed, with gold and silver trading $1,773.49/oz and $25.94/oz, respectively.

All price data is from 18.06.2021 as of 17:30


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.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

FX Monthly Report September 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. The report includes a macroeconomic overview as well as desk comments and technical analysis on key currency pairs.

Quarterly Metals Report – Q3 2021

COVID cases are rising across the globe as the delta variant spreads, this is causing some nervousness in financial markets, especially with the higher inflation rhetoric. Commodity prices have fallen since the Fed changed their tune inflation, the dollar has stabilised which has also been a headwind to prices. The summer months are traditionally quieter for metals demand which could prompt metals to consolidate. If the delta variant continues to spread, we may see higher levels of stimulus for longer. As things stand stimulus levels are set to be tapered and this could be brought forward if inflation remains high. We expect markets to remain volatile but on lower volume through the summer months.