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

Daily Base Metals Report

Read disclaimer

US stocks fluctuated on Friday, struggling to find direction on the back of weak economic data and another day of financial results from US companies. US composite business activity shrank in July, falling to 47.5, the lowest level in more than two years, further heightening recession fears in the economy. The dollar weakened slightly, while the 10yr US Treasury yield dropped to 2.78% for the first time since the beginning of the month. In Europe, German short-term bonds jumped higher as the market downgraded their bets on further ECB hiking and a growing recessionary environment. S&P Global composite indicator fell into contractionary territory for the first time since early 2021, as new orders declined rapidly during the month. UK consumer confidence continues to decline, falling to 48-year lows, as rising prices and interest rates kept confidence down. Elsewhere, the Russian central bank surprised the markets but lowering the benchmark from 9.5% to 8.0% today, signalling further reductions in the second half of the year.

Recent dollar losses have helped to prop up the base metals prices this week, with Friday seeing a broad expansion across the group. Nickel found support at $21,500/t before jumping higher in the second half of the day to close at $22,122/t. Next in line was aluminium which continued to trade higher from yesterday, breaking above $2,460/t to close at $2,475.50/t. Copper followed suit, as it increased back up to $7,452.50/t. Lead and zinc closed higher at $2,017.50/t and $2,992.50/t, respectively. Whilst China’s cabinet continues to urge for further acceleration of infrastructure projects this quarter through local governments, the market response to this remains muted.

Oil futures fluctuated, in line with the broader market, as markets weighed on supply disruptions and slowing economic growth. WTI and Brent remained at $98/bl and $105/bl. Gold gained marginal ground today to trade at $1,730/oz; silver edged lower to $18.77/oz. In the meantime, wheat prices declined as Russia and Ukraine reached a deal aiming to release millions of tonnes of grain from the Black Sea port.

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

All price data is from 22.07.2022 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.