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Daily Base Metals Report

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US stocks were supported by robust economic data coming out today, driving the broad-range gains across all sectors. US retail sales have continued to advance at a healthy pace, with the value of overall retail purchases growing by 0.9% in April; this figure is not adjusted for inflation and could present further softness to the real performance. US production rose at a solid pace for the third month straight, up by 0.8% m/m, as easing capacity restrictions alleviated some of the pressures from producers. The dollar fell below 104, and the 10yr US Treasury yield remained elevated. Elsewhere, euro-area performance in Q1 2022 exceeded market expectations, growing by 0.3% following the consumer spending following the emergence of the pandemic.

Most metals on the LME gained footing today, supported by the optimistic data coming out of the US. Additionally, Shanghai registered three consecutive days of zero-covid cases reported; this should qualify the city to lift its lockdown restrictions. It is yet not clear whether this rule will be reversed if the city registers any new cases later. Zinc gained footing, growing to close at $3,661.50/t; cash to 3-month spread fell to $3.75/t – the lowest level since late March. Copper followed suit, increasing to $9,366/t. Aluminium broke above the resistance of $2,880/t to close at $2,890.50/t. Lead gains were more moderate, as the metal fluctuated around $2,101.50/t. Nickel continued to decline, falling to $26,406/t. Likewise, iron ore has been struggling above $130/mt in recent sessions; the metal closed at $128.05/mt.

Oil futures fluctuated amid the new possible changes to imports from Russia. The US is considering suggesting tariffs on imports instead of embargoes as means of ensuring supply continuity. WTI and Brent traded at $113/bl and $114/bl. Gold edged lower to $1,818/oz on the back of solid US economic data.

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

All price data is from 17.05.2022 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.

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