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Daily Base Metals Report

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Stocks gained ground after Russia stated that it would remove some troops from the Ukraine border. US PPI data came in at 9.7% y/y in January, beating forecasts as companies faced increasing labour costs and supply chain bottlenecks. The dollar weakened, and the 10yr US Treasury yield topped 2.0%. Elsewhere, UK average wages rose by 3.6% y/y December; while this is the fastest increase in almost eight years, it was still below the inflation reading for that month.

There was mixed activity on the LME today as the metals that caught a bid due to the Russia & Ukraine tensions softened slightly following reports that Russia will pull back troops from the Ukraine border. Aluminium was marginally weaker but managed to recover above $3,200/t this afternoon and closed at $3,208/t. Spreads weakened today with the cash to 3-month at $28/t back. Copper edged higher to test appetite at $10,000/t but failed at this level to close at $9,968.50/t. Zinc was marginally higher today but failed above $3,600/t and closed at $3,582/t. Nickel consolidated once again above $23,000/t and closed fractionally higher at $23,292/t. SGX iron ore has recovered some losses overnight and traded at $137.35/t.

Oil sold off after the news of possibly easing tensions between Russia and Ukraine, with WTI and Brent falling off to $91.38/bl and $92.73/bl. Precious metals were all lower; silver fell to $23.27/oz, and gold was seen marginally lower at $1,850.60/oz.

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

All price data is from 15.02.2022 as of 17:30


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