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

Daily Base Metals Report

Read disclaimer

US stock performance reversed on disappointing corporate earnings results released today. The Fed meeting is due next week, and the policymakers are expected to start lifting rates in March. On the other hand, in Europe, Lagarde continues to reinforce the position that the ECB will not be withdrawing stimulus at the same rate as the US, as the inflation criteria are not yet satisfied. The dollar softened, and the US 10yr Treasury yield declined for the third day. UK retail sales underperformed in December, falling by 3.7% m/m, the biggest decline since January 2021, when the economy was under tough lockdown restrictions.

Metals sentiment was mixed today as nickel, tin, and lead rallied, but zinc copper and aluminium were weaker. The cash to 3-month spread for nickel stands at $281/t back, but the spread is weaker than yesterday. Nickel broke above $24,00/t and tested $24,340/t as the squeeze continues to close at $24,028/t. Tin is still rallying and closed at $43,955/t. Aluminium weakened but struggled to break support at $3,000/t, closing at $3,040.50/t. Likewise, copper was seen marginally lower, closing at $9,941/t.

Today, oil futures were lower as markets digested the news of an unexpected rick up in crude stockpiles. The White House stated it could accelerate the release of strategic reserves. WTI and Brent were at $84.91/bl and $87.59/bl. Precious metals were mostly on the back foot, with gold and silver falling to $1,833.52/oz and $24.32/oz, respectively.

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

All price data is from 21.01.2022 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 USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.