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Daily Base Metals Report

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Stocks fell on Monday after the Fed’s St. Louis President’s hawkish remarks; growing tensions between Russia and Ukraine add volatility to market moves. As a result, 10yr US Treasury yield leapt higher as investors fled to safety and the dollar gained ground. US consumer sentiment fell to a decade low in February as persistent inflation concerns dampen consumer outlook. US PPI is out tomorrow and is forecast to grow by 9.1% in January vs 9.7% in December.

Metals prices came under pressure in the morning but have managed to catch a bid this afternoon. Protracted buying pressure caused aluminium to break through $3,200/t but failed at $3,240/t, closing at $3,214.50/t. The cash to 3-month spread is backwardated at $16/t, and inventories for aluminium declined 6,300 tonnes today. Zinc closed on the lows was sold through support at $3,600/t and closed at $3,574.50/t. Copper was bid on the close and has recovered back above $9,900/t to close at $9,920/t, with the cash to 3-month spread at $50/t last. Nickel struggled above $23,500/t and closed at $23,267/t.

Oil wavered on the Ukraine tensions, with WTI and Brent trading at $93.48/bl and $94.59/bl. Precious metals were also mostly range-bound; gold and silver traded at $1,862.80/bl and $23.76/bl, respectively.

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

All price data is from 14.02.2022 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.

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.

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