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Daily Base Metals Report

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US stocks fluctuated on Monday as the investment mood soured. The dollar was broadly unchanged, while the 10yr US Treasury yield retreated to 1.3208% ahead of the US CPI data today, which is expected to have moderated slightly in August but remain strong year-on-year. US inflation expectations over the medium term rose to record highs, 4.0% for the next three years and 5.2% in a year’s time. US Democrats stated that they will aim to raise the corporate tax rate to 26.5%, up from the current 21%, with the goal of achieving a $3.5tr domestic investment plan.

Metals on the LME came under heavy selling pressure yesterday, with nickel the worst affected. Protracted selling pressure caused nickel prices to find support at $19,600/t and close at $19,726/t. Copper was next in line as prices struggled above $9,750/t to close at $9,562.50/t, with the cash to 3-month spread widening out to -$12.00/t. Aluminium tested $3,000/t - a 13-year high - as supply disruptions in Guinea and China’s crackdown on energy-intensive industries continue to compound; the metal ended up closing lower on the day at $2,896.50/t. Zinc managed to find support at $3,060/t and closed at $3,084.50/t. Lead and tin were also lower on the day, closing at $2,293/t and $33,498/t, respectively.

Oil futures extended a rally, with crude reaching a 6-week high of $73.92/bl; WTI edged up to $70.38/bl. OPEC monthly report predicted stronger demand for its crude, based on higher global consumption alongside continued output disruptions. Precious metals were mixed, only safe havens have strengthened; gold and silver traded at $1,793.52/oz and $23.77/oz, respectively.

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

All price data is from 13.09.2021 as of 17:30


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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.

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