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Daily Base Metals Report

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US stocks declined on Monday, driven in part by the intensifying angst over China’s Evergrande as well as speculation over the Fed’s meeting this week. Indeed, according to a Bloomberg survey, the Fed should make a formal announcement to taper in its November meeting while keeping the interest rates unchanged through 2022. US homebuilder sentiment increased for the first time in five months in August amid softer lumber prices and continued housing demand. The dollar was unchanged, and the 10yr US Treasury yield softened to 1.3107%.

LME metals retreated yesterday as continued aftermath of China stepping up restrictions on industrial activity. Aluminium prices softened yesterday but were supported above $2,840/t to close at $2,863/t. Copper saw the strongest selling, testing the key support level at $9,000/t and closed at $9,033/t. Nickel was also under pressure, closing at $19,056/t, and the cash to 3-month spread widened out to $19.00/t. Zinc crossed below the $3,020/t level in the second half of the day and closed near the day’s low at $3,014/t.

Oil futures declined yesterday after Royal Dutch Shell announced that a platform in the Gulf of Mexico would be out of service for the rest of the year. WTI and Brent sold off to $70.35/bl and $73.91/bl. Precious metals were mixed, with gold edging higher to $1,761.31/oz; silver traded at $22.22/oz.

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

All price data is from 20.09.2021 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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