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

Daily Base Metals Report

Read disclaimer

US stocks softened today as the bond markets cooled following the Fed’s strong conviction to keep hiking rates. The 10yr US Treasury yield held its nerve, and the dollar strengthened. At the same time, markets remain watchful of continued rises in inflationary pressures, more recently spurred by increases in energy and commodity costs. Indeed, the UK saw a 6.2% y/y rise in consumer prices in February, the highest number in more than 30 years. Likewise, Euro area consumer confidence fell to early-pandemic levels in March, with high energy bills deterring consumer sentiment. Russian stock exchange said to reopen partially tomorrow, however, a ban on short positions will be in place, further adding to restrictions prohibiting foreign nationals from exiting their positions.

A strong day of gains on the LME today as the Russian energy crisis gave metals a boost. Nickel jumped in the first half of the day, quickly hitting the 15% limit to close at $32,380/t. Aluminium strengthened, breaching resistance of $3,600/t before closing at $3,653/t; cash to 3-month strengthened into -$8.50/t. Copper was also seen higher, edging up towards $10,438/t before a close of $10,438.50/t. Zinc jumped more than 5.5% to close at $4,100/t, the level not seen since the beginning of March. Lead closed higher at $2,370/t.

Oil futures strengthened, once again driven by the possibility of sanctions from the EU this week. However, Germany continues to halt the progress, dampening the probability of an oil embargo in the near future. In the meantime, Russia has demanded European nations to pay for oil imports in rubbles, as it aims to shore up the local currency, further escalating the energy conflict. WTI and Brent increased up to $114/bl and $120/bl. Gold and silver saw marginal gains today, up to $1,934/oz and $25/oz, respectively.

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

All price data is from 23.03.2022 as of 17:30

Disclaimer

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.