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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Dariaefanova

Daria Efanova Research Associate

Contact research Contact Industrial Commodities

US stocks climbed to record highs after the price data increased at a more moderate pace in July, diminishing the concerns surrounding earlier-than-expected pullback of the stimulus. The US CPI rose by 0.5% m/m in July, after growing by 0.9% in June, the lowest level in 6 months. The focus now shifts to the Fed to discuss the prospects of tapering the bond purchases given the softer price gain. The dollar sold off in the second half of the day, and the 10yr US Treasury yield softened to 1.3540%. Stocks in Asia continue to retreat as the number of COVID-19 cases in the region’s biggest economies continues to beat record highs.

LME metal prices were on the front foot yesterday, apart from copper, which closed lower on the day at $9,512/t. Zinc prices were well supported and tested resistance at $3,051/t, prices closed lower at $3,043.50/t. Nickel was well bid in the second half of the day, testing the resistance level of $19,385/t, before closing below at $19,368/t; the cash to 3-month spread tightened into -$24.00/t. Aluminium prices remained marginally supported above $2,580/t before closing at $2,585/t. Lead was also stronger, closing higher on the day at $2,318.50/t.

Oil futures fluctuated after the news that the US will urge OPEC to revive production more quickly. OPEC monthly oil report is out today. WTI and Brent declined marginally to $67.72/bl and $70.01/bl. Precious metals edged higher, with gold and silver gaining to $1,748.30/oz and $23.47/oz, respectively.

For more in-depth analysis of base and precious metals, please see our Quarterly Metals report.

All price data is from 11.08.2021 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.

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.

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