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Non-independent Research Daily Base Metals Report

Non-independent Research

Daily Base Metals Report

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Authors
Dariaefanova

Daria Efanova Research Associate

Contact research Contact Industrial Commodities

US stocks continued to pare gains, driven in large by tech firms, as corporate earnings results for these firms were released today. US 10yr Treasury yield settled at 3.00%, as investors sought after the bond markets following the risk of halted gas shipments from Russia to the EU. The bloc proposed that they cut gas consumption by 15% over the next eight months to help the economy transition away from Russian exports, if the shutoff materialises. This comes a day before the ECB begins to hike rates for the first time in more than a decade. Euro-area consumer confidence dropped to a record low in June amid record inflation and a looming energy crisis. In the UK, inflation hit a 40-year high in June, up by 9.4% y/y, urging the BoE to deliver on interest rate hikes next month. Meanwhile, US existing home sales dropped for the fifth consecutive month, down by 5.4% m/m in June, as borrowing costs continue to erode availability.

Moderate upside momentum seen on the LME exchange today, only with tin to close lower at $24,691/t. Nickel saw the strongest gains, opening higher at $21,000/t and continuing to trace marginally higher during the day to close at $21,179/t. Lead followed suit, after initially declining in the first half of the day to gain strength to close at $2,032.50/t. Zinc also closed higher at $3,006.50/t. Aluminium jumped higher, but resistance at $2,460/t meant that the metal edged below to $2,430/t. Copper fluctuated to settle at $7,378/t. Chinese banks held their lending rates unchanged today as they aim to navigate supporting economic growth and a tighter monetary policy environment elsewhere. The 1-year loan prime rate remained unchanged at 3.7%.

Oil futures edged lower today in tandem with a rebound in a broader market; WTI and Brent now trade at $103/bl and $106/bl. In the meantime, Saudi Arabia stated that the output is near its limit, suggesting that the biggest producer might have less capacity than originally anticipated. Gold and silver steadied at $1,706/oz and $18.85/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 20.07.2022 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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