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Daily Base Metals Report

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US stocks picked up higher after protracted selling pressures yesterday, on the back of strong economic data outweighing the concerns of the new variant spread. The Fed vowed to step efforts to combat inflation, and in the meantime, it said be watching the wage-price indicator as a gauge of monetary policy outlook. US manufacturing rose to 61.1 in November as new orders continued to grow and companies accelerated production to keep up with demand. The dollar was range-bound, and the 10yr US Treasury yield held its nerve after three consecutive declines. Elsewhere, the Bank of Russia stated that another hike of 100bps is possible in December as inflation continues to run hot.

Metals prices were on the front foot today as we saw more confirmation that the Omicron variant symptoms are mild. Aluminium prices shot up in the second half of the day, testing resistance at $2,677/t, before closing lower at $2,664.50/t. Lead was also stronger, support above $2,280/t for most of the day; the metal closed higher at $2,301.50/t. Nickel was more range-bound, but managed to close higher on the day at $19,946/t; cash to 3-month spread widened out to $105.50/t. Copper weakness prevailed and the metal closed below support of $9,450/t at $9,444/t. SHFE prices for aluminium and copper are down at the time of writing and this afternoon’s session saw prices on the LME soften.

Oil futures rallied after the OPEC+ members gathered together to discuss the planned output hike. Markets are leaning towards a pause given the recent threat from the spread of infections. WTI and Brent increased to $68.23/bl and $71.53/bl. Precious metals were range-bound; gold and silver traded at $1,785.34/oz and $22.51/oz, respectively.

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

All price data is from 01.12.2021 as of 17:30


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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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