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

Daily Base Metals Report

Read disclaimer

Equity markets pushed higher as Nancy Pelosi landed in Taiwan; the trip has drawn criticism from China which is now expected to take ‘necessary measures to defend its sovereignty and will conduct military drills from August 4th. The dollar was marginally strong, with the index bouncing off the 50 DMA and testing 106. The U.S. 10 yr yield trades at 2.65% but the yield inversion deepens with the 2-10yr bonds at 35bps. Bond yields in Europe are consolidating with the spread between Italy and Germany less extreme at 3.016% and 0.775%, respectively. U.S. job openings edged lower in June to 10.698m as the labour market softens but remains near record highs. A promising sign of inflation slowing is that the WCI benchmark per 40ft box from Shanghai to L.A. has declined sharply on a Y/Y basis.

LME prices declined as the USD was marginally more substantial, and the market weighed the risks of Pelosi’s trip to Taiwan. Nickel lost the most ground as Indonesia’s suggested they are still studying the prospect of a ban or export tax on NPI and ferronickel, this caused nickel to test $22,100/t, but the market found support at this level. This would significantly impact Chinese prices and cause more investment into Indonesia for stainless production. Zinc prices were supported below $3,300/t and closed above this level at $3,312/t, and the cash to 3-month weakened marginally at $100/t. Tin was also weaker after failing above $24,600/t, with the spread at $188/t. Copper prices oscillated around the open today and are currently unchanged; the cash to 3-month spread tightened marginally into $8.50/t. Aluminium prices were bid at $2,405/t, and the market trades around $2,415.50/t.

Energy prices edged higher today as OPEC+ suggested Biden’s request for more oil will not be fulfilled. Water levels in the Rhine are very low, reducing the flow of barges. Brent trades at $101.05/bl and $94.79/bl.

All price data is from 02.08.2022 as of 17:00


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.