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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 fluctuated alongside lacklustre economic data on Friday. US hiring slowed sharply in August, with the smallest monthly gain seen since January, clouding the outlook for the Fed tapering its bond purchases by the year-end. US service PMI expanded robustly in August, despite being down month-on-month, as business activity moderated. The dollar weakened, and the 10yr US Treasury yield gained ground to 1.3223%. Likewise, in Europe, composite PMI slipped to 59.0 as the spread of the delta variant along with manufacturing bottlenecks stalled rapid recovery.

LME metal prices were on the front foot on Friday, apart from lead and tin, which closed lower on the day. Copper prices were well supported and tested resistance at $9,480/t and closed just off the highs at $9,431/t.; the cash to 3-month spread tightened into -$10.50/t. Aluminium was well bid in the second half of the day, testing the resistance level of $2,730/t before closing below at $2,727/t. Nickel prices shot up, closing below the key resistance level of $19,900/t at $19,789/t. Lead was range-bound but closed lower on the day at 2,310.50/t.

Oil futures finished the week on the front foot, despite being down on Friday, supported by the OPEC+ supply increase decision. WTI and Brent weakened into $69.43/bl and $72.72/bl. Precious metals were all stronger, with gold and silver edging up to $1,829.80/oz and $24.70/oz.

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

All price data is from 03.09.2021 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.

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