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Daily Base Metals Report

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US stock edged lower on Friday as the risk-on sentiment waned. US PPI rose by 8.3% in August, more than expected, a continued sign of high input costs for manufacturers. The dollar and the 10yr US Treasury yield were both stronger. Asian stocks climbed higher after China clarified their slowdown rather than a freeze of new game approvals. Elsewhere, Russia said that more tightening is possible after a smaller-than-expected rate hike in its latest meeting, as inflation reaches the levels last seen 5 years ago.

Another day of strong gains was seen on the LME market. Copper prices were firmer, however lack of appetite for prices above $9,700/t, triggered a close at $9,694.50/t. Nickel prices broke through the resistance of $20,200/t and closed higher at $20,392/t. Zinc prices were also firmer and closed at $3,119/t; cash to 3m spreads tightened up to -$10.10/t. Lead prices opened on the front foot, breaking through the key resistance level of $2,320/t to close at $2,318/t. Aluminium consolidated, closing at $2,924/t.

Oil futures rose after investors ignored China’s confirmation of releasing more crude from their strategic reserves. WTI and Brent consolidated into $69.79/bl and $72.95/bl. Precious metals were all weaker, with gold and silver falling to $1,792.95/oz and $23.89/oz.

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

All price data is from 10.09.2021 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.

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