SMM Daily Comments (Jun 5): Base Metals Mostly Fell, Ferrous Metals Bucked the Trend to Surge, Oil Gained Further on Saudi Arabia Output Cuts in July

Published: Jun 05, 2023 18:01 (GMT+8)

Source: SMM

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Crude oil rose today. As of 15:01 CST today, WTI oil and Brent oil rose 1.48% and 1.38% respectively. The U.S. Dollar index rose 0.14% as of 15:01.

Saudi Arabia announced it would implement an additional cut of 1 million barrels per day in July, bringing its output down to 9 million barrels per day.

Recently, the speeches of Fed officials have been divided, although the growth rate of non-agricultural employment in the United States accelerated in May after seasonal adjustment, marking the largest increase since January 2023, which shows that the US labour market is quite resilient. However, the unemployment rate unexpectedly rose to 3.7%, the highest in seven months, raising the possibility that the Fed will pause interest rate hikes.

As of the closing of the intraday trading, most SHFE base metals prices fell, and only SHFE lead rose 0.03%. SHFE nickel fell 1.76%, SHFE aluminum dropped 1.71%, SHFE tin fell 1.2%, SHFE zinc dipped 0.99%, and SHFE copper fell 0.21%.

For ferrous metals, only stainless steel fell 0.27%. Iron ore rose 2.15%, rebar gained 2.1%, hot-rolled coil jumped 1.98%, coke rose 1.89%, and coking coal rose 0.28%.

As of 15:05, all LME metals went down, with LME nickel down 1.41%, LME zinc down 1.17%, LME aluminium down 0.75%, LME lead down 0.42%, LME tin down 0.35%, and LME copper down 0.21%.

In terms of precious metals, SHFE gold and silver fell 1.28% and 1.34% respectively. As of 15:07, COMEX gold and silver fell 0.56% and 1.08% respectively.

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