1. Reports
  2. Daily Base Metals Report

Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

Read disclaimer

Back to reports

Authors
Dariaefanova

Daria Efanova Research Analyst

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.

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.

Daily Report Softs Technical Charts

Technical analysis and charts for the key sugar, cocoa and coffee contracts.

Weekly Report FX Options

Commentary and analysis covering OTC currency option pricing, volatility and positioning.

FX Monthly Report December 2021

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.

Quarterly Metals Report – Q4 2021

The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?

Back to top

Request free Investment Research trial

Fill in your details below to register for a free trial of our chargeable reports and we will be in contact with further details.

Thank you for registering your interest!

Thank you for registering your interest in our research, someone from our team will be in touch shortly. In the meantime, if you have any questions read our FAQ section.

* Mandatory fields

Have questions? Read our FAQ section

Why not subscribe for our complimentary Non-independent Research reports?

Stay up to date with our Daily, Weekly and Quarterly reports.

Sign up

Report covers

Subscribe

Select all the reports you wish to sign up for and submit your details below

Thank you for subscribing.

You should receive a confirmation email shortly. Please check your spam /junk mail folder if not received within a few minutes.

Do not forget to click the link in the confirmation message, otherwise, you will not receive any of our future emails.

Please note, except for journalists we cannot currently email subscribers in the European Economic Area (EEA)

* Mandatory fields

Have questions? Read our FAQ section

Interested in reading our paid Investment Research?

Discover our in-depth research reports covering the coffee market and a variety of topical subjects.

Request free trial

Research report covers