1. Reports
  2. Daily Base Metals Report
Non-independent Research

Daily Base Metals Report

Read disclaimer

US stocks fluctuated yesterday ahead of the Q3 financial results releases. US consumer inflation expectations continued to rise in September, up to 5.3% one year from now. US job openings declined in August, the first monthly decline this year, as demand for labour fluctuated. The dollar strengthened and the 10yr US Treasury yield lost ground for the first time in four sessions. Meanwhile, UK payrolls rose to above pre-pandemic levels in September, with vacancies rising to all-time highs. Globally, the IMF has lowered their global recovery outlook, with expected growth of 5.9% in 2021. Material shortages continue to weigh on market outlook, highlighted by German investor confidence falling for the fifth straight month in October.

Metals on the LME were mixed yesterday, with copper and lead down on the day. Aluminium was supported above $3,010/t, closing before the resistance level of $3,115/t at $3,068/t. Nickel fluctuated throughout the day, but closed marginally higher at $18,978/t. Zinc gained ground in the second half of the day, testing resistance at $3,276/t before closing at $3,263/t; cash to 3-month spread strengthened into $0.60/t. Copper managed to recoup morning losses, but still struggled to close higher; close at $9,465/t. Likewise, lead sold off in the latter part of the sessions, closing at $2,211.50/t.

Oil futures held the nerve, with WTI above $80/bl, on continued expectations of elevated demand this winter season. Brent traded at $83.37/bl. Precious metals were mixed, with gold and silver trading marginally higher to $1,763.83/oz and $22.59/oz, respectively.

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

All price data is from 12.10.2021 as of 17:30


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

Our FX Options Report contains commentary and analysis covering OTC currency option pricing, volatility and positioning. This week’s focus is on EURPLN and the currency trajectory following the deteriorating economic outlook in Europe and rising rates in Poland.

FX Monthly Report May 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look at the current inflation outlook across LATAM, Europe, U.S. and U.K. and gauge if central banks will slow their rate hikes. Economic data is weakening and China's poor growth and woeful demand could impact policy makers' decisions. 

Quarterly Metals Report – Q1 2022

Our analysts provide in-depth analysis into the current macroeconomic conditions and how near-term choppiness may subside in the coming months, once the Fed has confirmed its stance on Monetary Policy. The backwardated spreads in the metals market outline the tightness, and the geopolitical tensions between Russia and Ukraine could compound tightness in Europe due to lower energy, metals, and grain exports.