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

Daily Base Metals Report

Read disclaimer

US stocks surged as inflation expectations eased and the Fed’s Bullard pointed that recessionary fears are overdone; he also said he is in favour of front-loading interest rate hikes before slowing down the pace later on in the year. University of Michigan inflation expectations readings showed easing from a 14-year high, with inflation settling at 3.1% over the next 5-10 years. Sales of new US homes jumped by 10% in May, first monthly increase this year; however, the rise could be temporary and attributed to people securing mortgages before additional rate hikes later on in the year. The dollar and 10yr US Treasury yield were range-bound.

Metals sold off sharply today as global recession fears continue to mount. Nickel and tin saw the sharpest losses, both down more than 7% on the day, with the former closed at $22,400/t; tin closed at $24,590/t. Aluminium and copper losses were much more moderate, as both metals close the week 5% and 11% lower, respectively. Copper in particular, has tested the lows not seen since February 2021 at $8,122/t before closing at $8,381/t. Zinc and lead closed lower on the day at $3,350/t and $1,915/t, respectively. Total zinc inventories across seven markets in China continue to fall, with the latest decline pushing the level down to 208,300mt; the LME zinc inventory levels are at the 2020 lows.

Oil futures followed a general market consensus following the easing of inflation expectations. WTI and Brent strengthened into $107/bl and $113/bl. Precious metals were marginally unchanged, with gold and silver settling at $1,827/oz and $21.19/oz, respectively.

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

All price data is from 24.06.2022 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.