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Daily Base Metals Report

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US stocks rebounded after Monday’s sell-off, as continued discussions surrounding China’s real estate sector and the Fed statement clouded the outlook. The Fed decision is out today, and while the change in interest rates is highly unlikely, the discussion surrounding the beginning of tapering measures raises the market’s interest. The dollar remained broadly unchanged, and the 10yr US Treasury yield gained ground.

Most of the metal on the LME were down yesterday, only with tin closing marginally higher at $33,820/t. Many factories in the key manufacturing hub of Jiangsu are now being told to halt manufacturing, another round of measures to reduce the emissions. Aluminium shot up to test $2,900/t but lost momentum above that level and closed below at $2,846/t; the cash to 3-month spread widened out to -$20.98/t. Copper weakened in the second half of the day, testing support just above $8,800/t, closing higher at $8,975.50/t. Likewise, nickel followed suit, founding support at $18,400/t before closing at $18,830/t. Zinc and lead were also softer, closing at $2,978/t and $2,134/t, respectively.

Oil future slipped ahead of the Federal Reserve meeting in the first half of the day but managed to gain back; WTI and Brent edged higher to $70.50/bl and $74.23/bl. Precious metals were all stronger, with silver and platinum seeing strong gains during the day; gold and silver traded at $1,776.72/oz and $22.64/oz, respectively.

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

All price data is from 21.09.2021 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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