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Daily Base Metals Report

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US stocks were mixed today after days of strong performance driven by inflation and Fed statements. US PPI grew by 9.7% y/y in December, a sign of decelerating growth in producer prices. Meanwhile, US initial jobless claims picked up to 230,000 in the week ending January 8th, to now the highest since mid-November, which could suggest that employers laid off workers amid the latest omicron-driven surge. The dollar and the 10yr US Treasury softened marginally.

Metals prices weakened, with copper selling back below $10,000/t, and the market closing at $9,958.50/t. Nickel was firmer today after the Indonesian Government indicated they were studying an export level on NPI and ferronickel, closing higher at $22,176/t. Aluminium prices are slightly softer, but the tightness remains in the curve; the closing price was at $2,952/t and the cash to 3-month spread remained in contango at -$10.50/t. Tin sold off in the second half of the day after struggling to break above the resistance at $41,600/t; the metal closed at $40,511/t. Both lead and zinc closed higher on the day at $2,358/t and $3,563.50/t, respectively.

Oil futures held their nerve on tight market conditions. WTI and Brent traded at $82.69/bl and $84.89/bl. Precious metals fluctuated, with gold falling to $1,819.47/oz, while silver held its ground at $23.17/oz.

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All price data is from 13.01.2022 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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