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

Daily Base Metals Report

Read disclaimer

US stocks alongside European markets slid today after the investors digested the news of the sanctions to be imposed on Russia. The scale of the sanctions from the US seems to be limited so far, but more is expected to follow given the persistence of growing tensions. US home loan applications fell to the lowest level since 2019, as higher mortgage rates are starting to turn away potential borrowers, creating additional headwinds for the housing market. The dollar rallied in the second half of the day, and the 10yr US Treasury yield strengthened but struggled to break above 2.00%.

The metals on the LME were marginally softer today as the markets assessed the scale of sanctions imposed on Russia by the West and the impact on the commodities basket in the meantime. Nickel broke below $24,400/t to close at $24,396/t; the cash to 3-month spread eased somewhat into $572/t back. Aluminium and copper both softened to close at $3,292.50/t and $9,866/t, respectively. Iron ore futures gained ground but struggled to break above $140/t once again, driven in part by China’s efforts to support the real estate sector of the economy by encouraging commercial lenders to accelerate loans to companies. The country is also said to meet with port operators to help prevent hoarding of iron ore, which would help create availability in the market, and further push down prices in the longer term. Tin was the only one higher on the day, jumping to test $45,200/t, closing lower at $44,935/t. The main reason behind recent gains has been due to enterprises gradually resuming work after the New Year celebrations; given the trend continues, this should keep supply and demand more balanced in the short term, according to SMM. The question for the longer-term outlook is whether the conflict in Ukraine will push prices high enough for central banks to act aggressively as they begin their tightening cycles this year. In the meantime, however, tensions are causing markets to downgrade the scale and the timing of interest rate hikes.

Oil futures were on the front foot, with WTI and Brent edging higher to $92.67/bl and $9.64/bl. Precious metals were all higher today, with silver rallying higher to $24.47/oz, while gold maintained above $1,900/oz.

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

All price data is from 23.02.2022 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 EURPLN and the currency trajectory following the deteriorating economic outlook in Europe and rising rates in Poland.

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. 

Quarterly Metals Report – Q1 2022

Our analysts provide in-depth analysis into the current macroeconomic conditions and how near-term choppiness may subside in the coming months, once the Fed has confirmed its stance on Monetary Policy. The backwardated spreads in the metals market outline the tightness, and the geopolitical tensions between Russia and Ukraine could compound tightness in Europe due to lower energy, metals, and grain exports.