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Daily Base Metals Report

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US equities are in the at the time of writing despite uncertainty and volatility in financial markets. The Fed increased interest rates last night and were particularly hawkish, and stocks still take back some of the YTD losses with the S&P 500 and DOW Jones down 8.1% and 5.8%, respectively. The FTSE 100 has recovered losses from earlier on in the year and is not flat YTD, and this came after the BOE increased interest rates to 0.75% from 0.5% and suggested inflation would reach 8% in Q2 2022, cable buckled following the announcement and trades at 1.3168 at the time of writing. US data was mixed today, with initial jobless claims rising 214k to March 12th and continuing claims to 1419k to March 5th, capacity utilisation stands at 77.6% for February.

Activity on the LME was a mixed bag; aluminium and copper gained ground while the rest of the complex sold off. Nickel was hampered again due to technical issues, and the 3-month stand at $41,945/t, the cash to 3-month spread is still in backwardation at $205/t. We expect the contract to be limit down again tomorrow. Aluminium struggled above $3,409/t and settled at $3,384.5/t, while copper was well supported through resistance at $10,200/t to close at $10,243/t. Tin sold off today and closed at $41,500/t, as supply continues to improve despite the robust demand outlook from solder and semiconductors. Lead and zinc closed at $2,252/t and $3,826.5/t, respectively.

Energy prices rallied today, with Brent trading at $106.66/bl and WTI at $102.54/bl, the fundamentals for oil will remain tight despite fears of a slower Chinese economy. Sanctions on Russia will remain intact even if a peace agreement can be made. Gold and silver firmed and traded at $1,943/oz and $25.33/oz.

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

All price data is from 17.03.2022 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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