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

Daily Base Metals Report

Read disclaimer

US stocks fluctuated today as markets brace for the Fed decision tomorrow. The US central bank is expected to hike aggressively to combat persistently high inflation, and today’s PPI figures solidify the case for persistently high prices in the near term. The producer prices surged by 10.8% y/y in May. The 10yr US Treasury yield stabilised at 3.43%. The dollar trades at 105. In the meantime, UK real wages fell by the most in at least 21 years as wage increases struggled to keep in line with price increases; real average earnings fell by more than 3.4% y/y in April.

The weakness was persistent but softened on the LME markets today following disappointing data for US producer prices. Tin continued to suffer heavy losses for the second day in a row, erasing as much as 13% so far this week to close at $31,093/t. With the soldering metal prices slumping to the year’s lows, there are signs that the Chinese are cutting output to below 40% of design capacity to deal with the decline. Aluminium continued to weaken, breaching support at $2,600/t to close at November lows of $2,570/t. Copper tested the resistance of $9,380/t before selling off in line with the rest of the base metals to close at $9,230.50/t. Lead and zinc closed at $2,075.50/t and $3,596.50/t, respectively.

Oil prices gained footing today as hopes of robust demand offset the worries about inflation. WTI and Brent settled at $122/bl and $124/bl, respectively. European gas prices jumped by more than 20% following the news that Gazprom will halt nearly 40% of flows through its Nord Stream pipeline following a technical issue. Precious metals declined today, with gold and silver only seeing moderate declines to $1,810/oz and $20.92/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 14.06.2022 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.