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

Daily Base Metals Report

Read disclaimer

US stocks rose higher, with S&P 500 continuing to break record highs on the back of another day of positive corporate earnings results. US consumer sentiment picked up in October, the first time in four months, as the economy rebounded from the rise in COVID-19 cases in September. US home sales increased to a 6-month high in September, highlighting strong consumer demand. The dollar steadied, and the 10yr US Treasury yield held its ground at 1.63%. Meanwhile, China’s overnight repo rate declined to lows last seen in September and May 2021, after the central bank continued to pump liquidity into the banking system. Globally, automotive sector is likely to continue to correct, as, according to the EU Automobile Manufacturers Association, global chip shortages are forecast to persist into 2022, further confirming the severity of supply-side disruptions.

Price softness prevailed during the day on the LME market yesterday, as the complex closed lower on the day. Copper was subject to moderate selling pressure, testing the support level of $9,750/t and closing at $9,788.50/t; cash to 3-month widened out to $167/t. Aluminium prices were softer for most of the day, closing lower at $2,829/t. Nickel attempted to hold the previous day’s gains, however, sold off in the second half of the day at $20,091/t. Zinc saw the strongest losses, as it fell to test support at $3,386/t before closing higher at $3,425/t. Lead prices were more range-bound, closing marginally lower on the day at $2,422.50/t.

Oil futures edged higher, fluctuating around recent highs, as investors await the US crude inventories release. WTI and Brent traded $84.55/bl and $86.33/bl. Precious metals were all softer, with the industrial-focused metals, such as silver and platinum, experiencing a sharp correction. Gold and silver were down to $1,789.95/oz and $24.01/oz, respectively.

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

All price data is from 26.10.2021 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 EURCNH and the currency trajectory following deteriorating lockdown conditions in China. 

FX Monthly Report March 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs.

This month we focus on Brazil and how its currency has performed so far this year, and the key trends for 2022. Inflationary pressures are evident across the globe, but the Brazilian government is keeping fuel prices artificially low, to the detriment of Petrobras.

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.