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

Daily Base Metals Report

Read disclaimer

US stocks strengthened yesterday after a positive round of economic data. US manufacturing expanded at a better-than-expected pace of 59.9 in August, however, supply chain disruptions continued to weigh on the factories. US companies added fewer jobs than expected in August, suggesting a slowdown in labour market recovery. From the COVID-19 perspective, hospital admissions in the US fell for the first time since late June, a potential sign of tailing off in infections. The dollar sold off, and the 10yr US Treasury yield weakened.

Metals on the LME edged lower yesterday apart from lead, which closed higher at $2,273.50/t. Copper prices sold off and tested appetite around $9,300/t and closed at $9,335.50/t. Aluminium also weakened, testing support at $2,661/t to close at $2,690/t; the cash to 3-month spread widened out to $5.25/t, coming back to last week’s levels. Zinc and nickel prices also broke lower, closing at $2,981.50/t and $19,332/t, respectively.

Oil futures weakened as OPEC+ agreed to keep the existing supply plan unchanged, with gradual monthly production increases, with WTI and Brent softening into $68.15/bl and $71.21/bl. Precious metals steadied as the investors weighed on the economic data release; gold and silver gained ground to $1,816.25/oz and $24.24/oz, respectively.

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

All price data is from 01.09.2021 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.

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.