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Daily Base Metals Report

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Equities rallied today across the globe as investors' appetite for risk increased, safe-haven demand declined with gold, treasuries, and the dollar weakened. China will attempt to guide Russia towards peace, but we expect the path of least resistance to be conflict. A prolonged period of conflict will provide uncertainty to markets and keep volatility high. Inflation remains high, and the conflict in Ukraine will keep commodity prices high, but the strong consumer spending indicates that the Fed has room to move rates higher. ECB has suggested that they do what is needed to secure stability.

Metals prices were mixed today, lead and copper were firmer, but the rest of the complex declined. Copper struggled above $9,900/t and trades at $9,875/t with the cash to 3-month spread at $46/t, marginally weaker than yesterday's settlement at $54.5/t. Nickel and aluminium gave back some of yesterday's gains as metals have so far managed to avoid being sanctioned in an attempt to reduce inflationary pressures. Nickel trades at $24,235/t at writing. Aluminium is still above $3,300/t, and trades closed at $3,357.5/t; the spread is at $29/t back. Zinc has held above $3,600/t today and closed at $3,621.50/t.

Energy prices retreated today, with Brent and WTI trading at $97.28/bl and $91.55/t. Natural gas has sold off sharply as flows into Europe remain steady. Gold and silver also retreated and traded at $1,884.01/oz and $23.90/oz, respectively.

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

All price data is from 25.02.2022 as of 17:30


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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.

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