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.

Daily Report Softs Technical Charts

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

Weekly Report FX Options

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

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?

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.