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Daily Base Metals Report

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Equities are unchanged at the time of writing; earnings have shown that consumption was strong in Q2, with 53% of companies beating consumption expectations. The VIX has declined in recent weeks and stands around 23. U.S. manufacturing data was the only main data point today, with PMI expansionary at 52.2 for July; this was marginally lower than expectations. The data-dependent Fed could slow rate hikes in the coming meetings as they look at data, which is weakening weekly. European manufacturing PMI was contractionary at 49.8, but unemployment was 6.6%. The USD index was weaker today as investors look at weakening growth; the U.S. 10yr yield has fallen to 2.586%.

Metals prices declined apart from lead and zinc, which were marginally higher. Aluminium declined as slowing growth and poor manufacturing PMIs across the globe prompted prices to test $2,418.5/t, the cash to 3-month trades at $14/t backwardation. The zinc spread remained backwardated at $113/t, as the 3month price closed at $3,328/t, as lead was also marginally higher at $2,054/t with the spread at $3.75/t back. Tin traded above $25,600/t, the market closed at $24,900/t. Nickel prices edged higher on news of an export ban in Q3 of NPI and ferronickel from Indonesia, and the market gave back these gains and closed at $23,575/t. Copper failed to hold onto the highs this afternoon, with selling pressure pushing prices back through support at $7,850/t.

Energy prices declined sharply as demand woes continue to weaken sentiment; Libya's flows have also rebounded following the export ban. Brent trades at $99.77/t and WTI at $93.50/t. Gold and silver were unchanged.


All price data is from 1.08.2022 as of 17:00


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