Client Portal
  1. Metals Outlook
  2. Daily Base Metals Report

Daily Base Metals Report

Read disclaimer

Back to reports

Authors
Daria Efanova

Daria Efanova Head of Research

Viktoria Kuszak

Viktoria Kuszak Research Associate

Contact research Contact Industrial Commodities

While the Dow Jones and S&P 500 opened slightly lower, the Nasdaq continued its upward trajectory, reaching record highs. Investors are closely watching tomorrow’s US CPI data, which is expected to show a slight uptick in November inflation and will be key in shaping expectations for the Federal Reserve’s policy decision next week. Forward swaps are now pricing in nearly a 90% chance of a 25bps rate cut at the Fed’s meeting. Meanwhile, the ECB is widely expected to proceed with a 25bps cut tomorrow as part of its ongoing easing cycle. Geopolitical developments have also influenced markets, with the rapid fall of the Al-Assad regime in Syria boosting demand for safe-havens. This has pushed the dollar index above the 106.5 level, while the 10-year US Treasury yield rose, trading at 4.23%. 

Today, China stated that it might raise its budget decision to the highest level in three decades and further intensify its cutting cycle. This follows a recent statement from policymakers aimed at boosting stimulus in the new year. While this news is encouraging for the base metals complex in the near term, we do not anticipate it will boost long-term confidence. The construction sector remains under pressure, dampening physical demand for the material. Additionally, the current decline in demand is mitigating the effects of the concentrate shortages that markets are facing right now, further weighing on pricing prospects.

Moreover, changes in fiscal or monetary policy typically take 2-3 quarters to translate into real market impacts. As a result, we do not expect to see a continuous improvement in the region until the second half of 2025. Without clear signs of sustained recovery in the construction sector, it will be challenging for the market to establish a lasting upward trend. The base metal’s moves today underscore this narrative as prices held steady. Copper remained slightly above the $9,200/t mark at $9,208.50/t. Aluminium continued to fluctuate around the $2,600/t level. Nickel, on the other hand, dropped back below the $16,000/t level to $15,75/t.  

Gold saw a significant rise, approaching $2,690/oz, while silver edged slightly higher but struggled to break the $32/oz level. Oil prices moved modestly higher, with WTI at $68.90/bbl and Brent crude at $72.60/bbl.

Lme Metals Price And Volume 10122024

All price data is from 10.12.2024 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.

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 market insights

We will email you each time a new report has been published.

Subscribe

Select all the reports you wish to sign up for and submit your details below

Thank you for subscribing.

You should receive a confirmation email shortly. Please check your spam /junk mail folder if not received within a few minutes.

Do not forget to click the link in the confirmation message, otherwise, you will not receive any of our future emails.

This field is required
This field is required
This field is required
This field is required

Please note that we cannot email subscribers in the European Economic Area (EEA) or Switzerland, except for journalists.

(Please note that we cannot email subscribers in the European Economic Area (EEA) or Switzerland, except for journalists.)
You must agree to our terms and conditions before submitting the form
* Mandatory fields