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

Daily Base Metals Report

Read disclaimer

US stocks fluctuated between gains and losses today but managed to edge higher as the markets continued to assess the Fed’s trajectory for the rate hikes this year. Meanwhile, US producer prices fell for the second straight month in August as energy costs continued their retreat, although wholesale costs point to persistent underlying inflation in the supply chain pipeline; PPI increased by 8.7% y/y. The dollar and the 10yr US Treasury yield both came down from yesterday’s highs. Meanwhile, China set its reference rate for yuan at 6.9116/dollar, the strongest bias on record, as it follows the reduction in FX reserve requirements for banks as the country aims to support its currency.

Base metals continued their decline in the first half of the day before metals found support at current levels, with some edging higher day-on-day. Aluminium continued to soften, falling below the support level of $2,280/t, as the lows have tested the April 2021 lows. Copper struggled for momentum as it remained unchanged at $7,803/t. Likewise, nickel has been fluctuating around the $24,000/t level, where it found support in the latter half of the day and closed at $24,217/t. Lead and zinc both closed higher at $1,962.50/t and $3,229.50/t, respectively. Meanwhile, China softened the lockdown restrictions on the city of Chengdu, where it introduced the restrictions two weeks ago; the local governments noted no new cases in some districts, however, the longevity of this move is uncertain given China’s prevalent zero-covid approach.

As a result, the oil futures gained ground as the optimism surrounding the demand picture improved marginally. WTI and Brent now trade at $89/bl and $94/bl. Gold and silver were positive on the day, strengthening into $1,703/oz and $19.65/oz, respectively.

For more in-depth analysis of base and precious metals, our Q3 2022 Quarterly Metals report is out now!

Lme Metals Price And Volume (123)

All price data is from 14.09.2022 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. This week’s focus is on USDCNH and the currency's trajectory as Chinese economies continues to show weakness despite stimulus attempts from the government and the PBOC.

FX Monthly Report August 2022

Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we look into the EUR and the pressure the ECB is under to continue tightening monetary policy as USD continues to strengthen against major currencies. Economic data is weakening and inflation remains a concern. 

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.