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Daily Base Metals Report

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US stocks softened on Friday after the lacklustre economic data added to the concerns surrounding the sustainability of economic expansion. Retail sales grew at 0.6% in June, beating the estimates, with a broad gain recorded across the categories. The dollar strengthened and the 10yr US Treasury yield gained ground after three subsequent losses last week. University of Michigan’s sentiment index fell to a 5-month low of 80.8 in July, below estimates, as mounting concerns surrounding rising prices led to a sharp deterioration from the demand side.

 LME metals have been mixed yesterday. Nickel prices edged higher today, supported above $18,900/t to close at $19,070/t, the cash to 3-month spread has widened out to -$10.00/t. Zinc was well bid in the second half of the day, testing $3,010/t but closed lower at $3,003/t. Copper was mostly range-bound and broke through the support level at $9,450/t before closing at $9,427/t. Aluminium traded lower to close on the back foot below at $2,488.50/t. Lead was also weaker today, closing at $2,320/t.

Oil futures edged higher but poised for the biggest weekly loss since March as the markets weighed on the prospects of higher supply from the OPEC+. WTI and Brent consolidated into $72.07/bl and $73.82/bl. Precious metals were all weaker, with gold and silver falling down to $1,814.30/oz and $25.72/oz.

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All price data is from 16.07.2021 as of 17:30

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