Monthly Metal Review

Overview (April 2018)

Global markets became more circumspect in April as trade tensions have risen with the US, the yield on the 10-year US treasuries have climbed to over three percent, for the first time since 2014, and there have been some additions and reductions in geopolitical tensions. On a positive note, talks between North and South Korea have gone well, (but it is early days and it is hard to see North Korea giving up its nu-clear stance, having just acquired it). On a more negative note, oil prices have rallied, with spot Brent Crude climbing to $74 per barrel, on the US threat that it will leave the Iranian Nu-clear Deal, which could raise already heightened tensions in the Middle East. The US sanctions against Russia, stirred up vola-tility in the metals markets, particularly in aluminium, nickel and palladium, where prices rallied sharply on fears that supply would be disrupted, but seeing how this was hurting not only US manufacturers by other trading partners, the US softened its stance – once again showing that President Donald Trump has more ‘bark than bite’, but markets still react to his rhetoric and that makes for a riskier market place. In addition, to the trade tensions, the markets have had to take on board further disappointing economic data that is suggesting global growth is slowing. Euro zone industrial pro-duction fell 0.8% in February, after a 0.6% fall in January, and industrial production in China dropped to 6 percent from 7.2 percent in March and industrial production dropped to 0.5 percent from 1.1 percent in the US. The US job market also showed weakness in March, with the economy adding 103,000 jobs, compared with an average of 256,500 jobs in the first two months of the year. The fact that the global economy is slowing is high-lighted by the falling global manufacturing PMI that fell for the third consecutive month to 53.4 in March having peaked in December at 54.5. That said, the drop is not that large and the reading remains above the 50 divide between expansion and contraction, so although sentiment is not particularly bullish, the outlook is far from negative. Disappointing economic data, combined with up-wardly mobile US interest rates, and a corresponding stronger dollar that has seen the dollar index break out of its 88.50-90.50 base to all but reach 92, are likely to have dampened sentiment. Although the outlook is not as bullish as it was in 2017, the global economy is still expanding and although some supply responses are starting to be seen, especially in zinc, the years of restrained capex between 2012 and 2016 are likely to mean that generally producers will struggle for a few more years to respond to continued demand growth. There is also the risk of supply disruptions, either from resource nationalism, as is being seen in the DRC, or from strikes should expiring labour contracts not be renewed smoothly.

Daily Prices

May 2018

Copper
Date(Fix.) ($/MT)
Average 6819.28
24-05-2018 6835
23-05-2018 6800
22-05-2018 6931.5
21-05-2018 6861
18-05-2018 6783.5
17-05-2018 6838
16-05-2018 6773.5
15-05-2018 6822.5
14-05-2018 6828
11-05-2018 6869
10-05-2018 6862
08-05-2018 6722
04-05-2018 6783
03-05-2018 6837
02-05-2018 6785
01-05-2018 6777.5
Silver
Date(Fix.) ($/OZ)
Average 16.46
24-05-2018 16.51
23-05-2018 16.53
22-05-2018 16.58
21-05-2018 16.39
18-05-2018 16.34
17-05-2018 16.385
16-05-2018 16.255
15-05-2018 16.41
14-05-2018 16.645
11-05-2018 16.76
10-05-2018 16.6
08-05-2018 16.445
04-05-2018 16.415
03-05-2018 16.47
02-05-2018 16.35
01-05-2018 16.25
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1303.81
24-05-2018 1296.35
23-05-2018 1294
22-05-2018 1293.9
21-05-2018 1285.85
18-05-2018 1287.2
17-05-2018 1288.85
16-05-2018 1291.75
15-05-2018 1310.05
14-05-2018 1320.7
11-05-2018 1324.8
10-05-2018 1314.8
08-05-2018 1310.05
04-05-2018 1309.35
03-05-2018 1313.3
02-05-2018 1310.75
01-05-2018 1309.2
Date(Fix.) ($/OZ)
Average 1303.30
24-05-2018 1300.6
23-05-2018 1291.5
22-05-2018 1293.475
21-05-2018 1287.1
18-05-2018 1287.75
17-05-2018 1289.175
16-05-2018 1291.5
15-05-2018 1302.525
14-05-2018 1320.275
11-05-2018 1324.575
10-05-2018 1316.8
08-05-2018 1308.325
04-05-2018 1309.375
03-05-2018 1314.175
02-05-2018 1307.475
01-05-2018 1308.15
Date(Fix.) ($/OZ)
Average 1302.79
24-05-2018 1304.85
23-05-2018 1289
22-05-2018 1293.05
21-05-2018 1288.35
18-05-2018 1288.3
17-05-2018 1289.5
16-05-2018 1291.25
15-05-2018 1295
14-05-2018 1319.85
11-05-2018 1324.35
10-05-2018 1318.8
08-05-2018 1306.6
04-05-2018 1309.4
03-05-2018 1315.05
02-05-2018 1304.2
01-05-2018 1307.1
Lead
Date(Fix.) ($/MT)
Average 2349.75
24-05-2018 2502
23-05-2018 2441
22-05-2018 2448
21-05-2018 2360
18-05-2018 2330.5
17-05-2018 2325
16-05-2018 2321
15-05-2018 2346
14-05-2018 2380
11-05-2018 2332
10-05-2018 2300
08-05-2018 2301.5
04-05-2018 2274
03-05-2018 2279
02-05-2018 2320
01-05-2018 2336
Zinc
Date(Fix.) ($/MT)
Average 3050.88
24-05-2018 3022
23-05-2018 3006
22-05-2018 3038.5
21-05-2018 3098
18-05-2018 3080.5
17-05-2018 3053
16-05-2018 3055
15-05-2018 3060.5
14-05-2018 3020.5
11-05-2018 3080
10-05-2018 3072
08-05-2018 3066
04-05-2018 2968
03-05-2018 3028
02-05-2018 3065.5
01-05-2018 3100.5
Tin
Date(Fix.) ($/MT)
Average 20952.81
24-05-2018 20450
23-05-2018 20650
22-05-2018 20725
21-05-2018 20650
18-05-2018 20675
17-05-2018 20660
16-05-2018 20895
15-05-2018 21025
14-05-2018 21025
11-05-2018 20950
10-05-2018 20800
08-05-2018 21295
04-05-2018 21375
03-05-2018 21400
02-05-2018 21270
01-05-2018 21400
Nickel
Date(Fix.) ($/MT)
Average 14244.06
24-05-2018 14525
23-05-2018 14510
22-05-2018 14700
21-05-2018 14615
18-05-2018 14750
17-05-2018 14580
16-05-2018 14410
15-05-2018 14490
14-05-2018 14320
11-05-2018 13910
10-05-2018 13810
08-05-2018 13940
04-05-2018 13835
03-05-2018 13985
02-05-2018 13915
01-05-2018 13610
Cobalt
Date(Fix.) ($/MT)
Average 90531.25
24-05-2018 91000
23-05-2018 91500
22-05-2018 92000
21-05-2018 91000
18-05-2018 91000
17-05-2018 91000
16-05-2018 91000
15-05-2018 91000
14-05-2018 91500
11-05-2018 90250
10-05-2018 89500
08-05-2018 89000
04-05-2018 89000
03-05-2018 90500
02-05-2018 90500
01-05-2018 88750