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

Daily Base Metals Report

Read disclaimer

The US pared gains as the markets await inflation data this week and its potential impact on the Fed’s tightening path; whilst the 50bps have already been priced in the next two meetings, the trajectory for the rest of the year is uncertain and will largely depend on the impact on economic growth. Data last week pointed to stronger than expected hiring in May, buying the Fed more time to aggressively hike the rate in the next couple of meetings before slowing down the pace to assess the impact on both inflation and growth. The 10yr US Treasury yield broke back above 3.00% for the first time since mid-April. The dollar continues to fluctuate around 102. Meanwhile, the pound remained broadly unchanged, despite the markets assessing whether Boris Johnson would survive the confidence vote later today. At the same time, the ECB announced that it would introduce a new set of QE support if needed to counter borrowing costs for member states, such as Italy, given their concern about the selloff.

Sentiment on the LME improved as it reopened after a 4-day break, with the gradual easing of restrictions in China giving the metals a boost. In particular, copper gapped higher on the open, testing $9,910/t, the April highs, before closing marginally lower at $9,745/t. Aluminium fluctuated but closing higher from last week at $2,782.50/t. US President Biden made an executive decision to boost the solar industry seeking to revive the projects that have been stalled by the trade dispute by imposing a 2-year freeze on solar tariffs for imports; that should benefit metals such as aluminium and silver from industrial uses. Nickel jumped 4% to close at $29,701/t. Zinc and lead closed higher at $3,873/t and $2,214.50/t, respectively.

Oil futures held around $118/bl levels after Saudi Arabia signalled confidence surrounding its global demand outlook, given the improving demand conditions in China. Meanwhile, the US was said to be considering allowing more sanctioned Iranian oil onto global markets to counter the decline in Russian supplies. Precious metals benefitted from the industrial use demand, while gold edged marginally lower to $1,843/oz.

For more in-depth analysis of base and precious metals, our Q2 2022 Quarterly Metals report is out now!

All price data is from 07.06.2022 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. 

Quarterly Metals Report – Q3 2022

Our analysts provide an in-depth analysis of the metals market and current macroeconomic conditions. The environment has weakened significantly as growth fears rise amid persistent high inflation. Central banks are data-dependent, which could mean they slow rate hikes as growth starts to slow. This has meant a downside to the US 10yr yield, but also we see a downside to rate hikes in Q4. Europe will likely enter a recession before the US and take longer to recover, but material availability is significantly lower, shown by low inventories.

FX Monthly Report June 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the JPY and the pressure the BOJ is under to change their monetary policy as JPY continues to weaken against major currencies. Economic data is weakening and inflation is less of a problem in Japan, but yields continue to test the cap.