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

Daily Base Metals Report

Read disclaimer

US stocks retreated after a disappointing economic performance being released today, as we saw inflation and tight market conditions trickle through to the demand side. US retail sales fell by 1.9% m/m, the most significant decline in 10 months, as inflation deteriorated consumer spending. Persistent inflationary pressures, coupled with the omicron-led outbreak, have also caused US consumer sentiment to decline in early January; consumers now expect inflation to rise 4.9% over the next year, vs 2% that the Fed will aim to bring it down to. Likewise, US factory output growth declined in December, driven by material and labour shortages putting pressure on manufacturers. The dollar softened, and the 10yr US Treasury yield jumped higher. Elsewhere, German GDP fell by 1% in Q4 2021, with the last decline seen in Q1, when the economy was through tough lockdown restrictions.

LME prices edged lower after US retail sales declined in December. Copper traded through $9,750/t to close at $9,719.50/t. Zinc weakened back to $3,521/t as data suggests exports improved by 15.6% Y/Y in November, the metal closed at $3,521/t. Aluminium weakened to close at $2,976.50/t. Selling pressure was weaker across the other base metals, but tin continues to hold above $40,000/t, closing higher at $40,351/t.

Oil futures closed the fourth straight week on the front foot, making it the longest-running streak since October on signs of tightening market conditions and resilient demand-side despite omicron risks. WTI and Brent traded higher to $83.00/bl and $85.25/bl. Precious metals have all weakened, with gold and silver falling to $1,818.64/oz and $22.94/oz, respectively.

Sign-up for our complimentary Metals Market Webinar on Wednesday 19 January 2022.

All price data is from 14.01.2022 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 EURCHF following the surprise rate hike from the Swiss central bank last week. 

Quarterly Metals Report – Q2 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. Central Banks are raising rates to curb inflationary pressures and the cost of living crisis in the Euro area and the UK. Economic data and consumer demand are weakening and market sentiment has been impacted accordingly. This, in conjunction with lockdowns in China, has caused demand for metals to soften and shift the Chinese market into surplus, but supply chain logistics have tightened the European market. The easing of lockdowns will boost sentiment and prompt a rally in the near term, but the market is moving into selling rallies as opposed to buying dips.

FX Monthly Report May 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look at the current inflation outlook across LATAM, Europe, U.S. and U.K. and gauge if central banks will slow their rate hikes. Economic data is weakening and China's poor growth and woeful demand could impact policy makers' decisions.