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Daily Base Metals Report

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The US rose for the second day straight after positive labour data came out today, suggesting a strong base for the Fed to continue hiking aggressively. Two of the Fed’s most hawkish policymakers backed another 75bps hike in July, dismissing recession fears. US employers added 372,00 in June; and whilst softer month-on-month, the level is still robust. The unemployment rate remained unchanged at 3.6%. Meanwhile, a drop in the participation rate highlights the worker shortage complaints in recent months and employers still struggling to fill positions, which could lead to sustained wage pressures. The dollar softened for the first time in 5 days, and the 10yr US Treasury yield jumped back above 3.00%.

Metals continued to soften today after the Chinese stimulus failed to keep sentiment elevated. Copper edged lower, but support at $7,650/t forced the metal to edge higher to close at $7,805.50/t. Likewise, tin declined, falling to close at $25,364/t. Lead and zinc both closed lower at $1,917.50/t and $3,099/t, respectively. Aluminium fluctuated before slipping into positive by the end of the day to close at $2,436.50/t. Aluminium processing enterprises’ operating rates have fallen marginally to stand at 66.5%, with only wire and cable seeing increases week on week, as companies rushed to complete the shipping process on the back of potential fears of renewed lockdown restrictions in Wuxi.

Oil futures closed higher on the day at $104/bl and $107/bl. Gold and silver fluctuated between gains and losses to settle at $1,743/oz and $19.29/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 08.07.2022 as of 17:30


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