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Daily Base Metals Report

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US markets are closed today for a national holiday. US equity-index futures fell as markets assessed the impact of persistent inflation and softer economic growth prospects. In the meantime, President Biden is considering lifting tariffs on Chinese imports as the administration is trying to quell inflation. The dollar improved marginally on the back of that. US 10yr Treasury yield sold off below 3.00% to 2.88%. In Europe, the stocks improved for the first time in four days as dip-buyers emerged. Italian 10yr bond yield fell to 3.00% in the last couple of days on the back of growing political tensions in the country. Meanwhile, Germany reported its first monthly trade deficit in 30 years in May, with rising prices and softer demand for products being the main drivers behind the shortfall.

Mixed metal performance on the LME exchange today. Aluminium edged higher from the last week’s lows as inventories continue to decline; the closing stock level has reached 366,150, the level not seen since December 2000 and near record lows. The metal is closed at $2,464/t. Some smelters in the US are already curtailing capacity on the back of soaring energy costs. Likewise, zinc rebounded back above $3,100/t to close at $3,118/t. In line with aluminium, its on-warrant inventory levels are series lows recorded from 1997, creating tight market conditions in case of another high-volatility event. Likewise, lead gapped higher at the open and settled at that level to close at $1,957.50/t. Copper lacked strength above the $8,050/t resistance level, causing it to close below at $8,006/t.

Oil futures were seen higher today on the back of tighter market conditions, with WTI and Brent settling at $110/bl and $113/bl. Precious metals were mixed, with gold and silver trading at $1,806/oz and $19.91/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 04.07.2022 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.

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