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Daily Base Metals Report

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US stocks pushed higher as markets await the Q2 earnings results this week. The 10yr US Treasury yield gained ground; this week the focus is shifted to new supply coming to the market. The dollar strengthened. Elsewhere, Asian stocks edged higher after China’s CB announced boosting liquidity by cutting the amount of cash reserves banks are allowed to hold. Meanwhile, ECB President Lagarde told investors to prepare for the new monetary stimulus guidance in more than a week and signalled that fresh measures might be brought back next year to support the economic recovery. From the vaccine front, Pfizer says it plans to discuss the request for federal authorisation of the third dose of its COVID-19 vaccine, to encourage the uptake of booster jabs.

LME prices closed down yesterday except for lead and tin. Nickel gave back recent gains, taking out support at $18,700/t to close at $18,679/t. Protracted selling pressure prompted copper to break through $9,450/t and closed at $9,409/t. Aluminium was well bid below $2,500/t and closed at $2,489.50/t. Lead was well supported at $2,310/t and closed marginally higher at $2,332.50/t; cash to 3-month spread widened out to -$1.00/t.

Oil futures extended the decline amid an OPEC+ decline over the supply outlook. WTI and Brent softened into $74.15/bl and $75.19/bl. Precious metals were mixed; gold edged lower down to $1,806.10/oz and silver was higher at $26.18/oz.

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All price data is from 12.07.2021 as of 17:30

Disclaimer

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.

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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.