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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Geordie Wilkes

Geordie Wilkes Head of Research

Contact research Contact Industrial Commodities

Equity markets weakened on Friday as investors were concerned about another wave of lockdowns in Europe; this caused tech stocks to be well bid. There was no significant U.S. data out, but we saw retail sales decline by 1.3% Y/Y in the U.K., including fuel, excluding fuel sales, which fell by 1.9% Y/Y. The dollar index has taken back yesterday’s losses but continues to struggle above 96. The U.S. 10 yr yield has declined to 1.53%, European bonds rallied as well, with the German 10-year at -0.331%, and the U.K. 10 yr at 0.881%. There is no major economic data released this weekend.

Metals gained ground on Friday with prices firming, except for tin which consolidated. Copper spreads were well bid once again today, causing traders to bid the flat price as well and it closed at $9,646.5. Nickel found support at $19,550, prompting a close back above $20,000 at $20,044, the cash to 3-month spread settled at $127 back. Aluminium gained $63.50 and closed at $2,679.5 after rejecting $2,700. Lead and zinc were also well supported and closed at $2,215.50 and $3,238, respectively. 

Energy prices fell sharply as traders looked to weaker demand due to the lockdowns in Europe, Brent and WTI trade at $79.2/t and $76.5/t. Precious metals have consolidated today, but inflationary fears could cause the market to rally.

All price data is from 19.11.2021 as of 17:30

 

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