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Daily Base Metals Report

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Stocks fluctuated on Monday, with markets accessing the global macro data along with the Fed meeting coming up this week. Manufacturing PMI indices pointed to further correction in major producing countries, with China contractionary for the second month straight, and the US index falling month-on-month, but expansionary; lead times continue to weigh on supplier deliveries, and labour shortages stall port activity. The dollar softened, and the 10yr US Treasury yield held its ground.

LME metals have been mixed, with zinc and tin lower on the day. Copper prices edged higher in the first half of the day, to find resistance at $9,600/t to close at $9,555/t; the cash to 3-month spread has tightened up to $438/t, the highest since mid-October. Nickel fluctuated, breaking above $19,700/t resistance level to close higher at $19,702/t. Likewise, aluminium was mostly range-bound and found a support level at $2,700/t before closing at $2,719.50/t. Zinc and tin traded lower to close on the back foot below at $3,357.50/t and $36,970/t, respectively.

Oil futures gained ground after a rise in stockpiles was seen at the biggest US storage facility, suggesting that the supply chain strains might be slowing. WTI and Brent traded at $84.13/bl and $84.63/bl. Precious metals were all higher, with gold and silver edging up to $1,793.33/oz and $23.99/oz, respectively.

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

All price data is from 01.11.2021 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.

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