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

Daily Base Metals Report

Read disclaimer

US stocks advanced today after the focus shifted to the Fed once again. Jerome Powell stated the Fed's intention to lift off rates by 25bps in March, despite the Ukraine crisis clouding the outlook, as policymakers continue to tackle high inflation and tight labour market conditions; he has also stated that inflation is expected to peak and come down this year. US companies hired more people than forecast, up by 475,000 in February, as the labour market seemed to have rebounded from an omicron-driven slump in January. The dollar edged higher before falling back to 97.51, and the 10yr US Treasury yield rallied back to 1.83%. Elsewhere, Euro-zone inflation advanced to all-time highs of 5.8% in February, higher than expected; the Russian invasion in Ukraine is set to further trickle down to consumers in the near term as energy prices continue to rise. The ruble headed for the third consecutive decline despite Russia's efforts to shore up the local currency.

The base metal group continued their advance, and some metals surged to multi-year highs; supply-related anxieties continue to drive Russia's key metals further. Aluminium hit a fresh record high of $3,597/t as markets continued to digest the news in relation to sanctions against Russian companies; the metal closed at $3,569/t. Likewise, nickel tested the $26,500/t level, closing lower at $25,879/t; cash to 3-month spread tightened into $454/t. Copper followed a similar trajectory but softened to close at $10,166/t in the second half of the day. Only tin and lead were lower on the day, closing at $45,628/t and $2,400.50/t, respectively.

Oil futures skyrocketed once again, with the latest spike driven by the President's Biden signal that the country is open to restrictions on oil and gas imports. WTI and Brent jumped to $106.75/bl and $109.18/bl. Both silver and gold sold off to $25.01/oz and $1,919/oz, respectively.

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

All price data is from 02.03.2022 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.