Monthly Metal Review

Overview (June 2018)

U.S. President Donald Trump threatened China with new tariffs on a whopping US$200 billion worth of goods, further escalating a trade dispute between the two largest economies. Trump announced a 25-percent tariff on US$50 billion worth of Chinese goods on 15 June. The administration said $34 billion worth of Chinese goods will be subject to tariffs starting July 6, with an additional $16 billion worth of products undergoing reviews. China said it would strike back with tariffs of equal strength, as did most of the threatened nations. Meanwhile, Trump threatened to impose a 20-percent tariff on car imports from the European Union. Trump had earlier upended the G7 meeting in Canada of the oldest U.S. allies, antagonizing them with an America-First agenda, insults and refusal to sign on to a non-controversial closing statement. Beginning 5 July, a day before the U.S. and China are to impose tariffs on each other, China’s central bank is to cut the amount of cash some lenders must hold as reserves and unlock some 700 billion yuan (US$108 bil-lion) of liquidity, as it seeks to boost credit for smaller companies. A stronger dollar, which has seen the dollar index rise to 95.54 and the euro fall to around 1.1500 - levels not seen since July last year, are another headwind for commodity prices. The dollar is strong on the back of the more hawkish Federal Reserve policy, the Federal Open Market Committee (FOMC), raised the Federal funds rate on June 13, to 2 percent from 1.75 percent. In addition, after the June FOMC meeting, the consensus feeling was that there will be two more interest rate rises this year, making it four rises over the whole of 2018, compared with earlier expectation for three rises over the course of the year. As well as dollar strength, the euro has been weak as the ECB remains extremely dovish with a commitment to leave short-term interest rates unchanged until “at least the summer of 2019”. The increased rhetoric over US trade policy has led to an increase in investor interest in safe-havens with the main beneficiaries being US and German government debt and the yen, but not gold, which has fallen from favour as the opportunity cost of holding gold has in-creased as yields on 10-year US treasuries have remained buoyant, mainly trading just below the 3 percent level, with the pullback from being above 3 percent mainly due to the increased level of safe-haven demand on the back of the US trade wars.

Daily Prices

July 2018

Copper
Date(Fix.) ($/MT)
Average 6279.32
19-07-2018 5982
18-07-2018 6068
17-07-2018 6141.5
16-07-2018 6143
13-07-2018 6166
12-07-2018 6173
11-07-2018 6182
10-07-2018 6308
09-07-2018 6383
06-07-2018 6326
05-07-2018 6399.5
04-07-2018 6459
03-07-2018 6584.5
02-07-2018 6595
Silver
Date(Fix.) ($/OZ)
Average 15.85
19-07-2018 15.26
18-07-2018 15.44
17-07-2018 15.77
16-07-2018 15.81
13-07-2018 15.81
12-07-2018 15.84
11-07-2018 15.915
10-07-2018 15.93
09-07-2018 16.205
06-07-2018 15.995
05-07-2018 15.95
04-07-2018 16.045
03-07-2018 15.93
02-07-2018 15.98
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1245.68
19-07-2018 1217.4
18-07-2018 1223.45
17-07-2018 1243.65
16-07-2018 1244.9
13-07-2018 1240.5
12-07-2018 1244.85
11-07-2018 1250
10-07-2018 1253.7
09-07-2018 1262.6
06-07-2018 1254.2
05-07-2018 1252.5
04-07-2018 1256.9
03-07-2018 1245.85
02-07-2018 1249
Date(Fix.) ($/OZ)
Average 1245.59
19-07-2018 1217.475
18-07-2018 1223.975
17-07-2018 1238.225
16-07-2018 1243
13-07-2018 1241.1
12-07-2018 1245.375
11-07-2018 1250.7
10-07-2018 1253.85
09-07-2018 1262.325
06-07-2018 1254.775
05-07-2018 1254
04-07-2018 1256.275
03-07-2018 1248.8
02-07-2018 1248.4
Date(Fix.) ($/OZ)
Average 1245.50
19-07-2018 1217.55
18-07-2018 1224.5
17-07-2018 1232.8
16-07-2018 1241.1
13-07-2018 1241.7
12-07-2018 1245.9
11-07-2018 1251.4
10-07-2018 1254
09-07-2018 1262.05
06-07-2018 1255.35
05-07-2018 1255.5
04-07-2018 1255.65
03-07-2018 1251.75
02-07-2018 1247.8
Lead
Date(Fix.) ($/MT)
Average 2258.11
19-07-2018 2092.5
18-07-2018 2118
17-07-2018 2164
16-07-2018 2183
13-07-2018 2162
12-07-2018 2140
11-07-2018 2244
10-07-2018 2283
09-07-2018 2357
06-07-2018 2321
05-07-2018 2373
04-07-2018 2373
03-07-2018 2405
02-07-2018 2398
Zinc
Date(Fix.) ($/MT)
Average 2677.82
19-07-2018 2563
18-07-2018 2583
17-07-2018 2548
16-07-2018 2527
13-07-2018 2607
12-07-2018 2598
11-07-2018 2574
10-07-2018 2658
09-07-2018 2719.5
06-07-2018 2759
05-07-2018 2758
04-07-2018 2797
03-07-2018 2883
02-07-2018 2915
Tin
Date(Fix.) ($/MT)
Average 19622.50
19-07-2018 19405
18-07-2018 19550
17-07-2018 19500
16-07-2018 19605
13-07-2018 19775
12-07-2018 19575
11-07-2018 19445
10-07-2018 19850
09-07-2018 19490
06-07-2018 19425
05-07-2018 19585
04-07-2018 19850
03-07-2018 19810
02-07-2018 19850
Nickel
Date(Fix.) ($/MT)
Average 13884.64
19-07-2018 13220
18-07-2018 13315
17-07-2018 13460
16-07-2018 13680
13-07-2018 13870
12-07-2018 14055
11-07-2018 13630
10-07-2018 13960
09-07-2018 13970
06-07-2018 13760
05-07-2018 14170
04-07-2018 14100
03-07-2018 14620
02-07-2018 14575
Cobalt
Date(Fix.) ($/MT)
Average 71446.43
19-07-2018 70000
18-07-2018 70000
17-07-2018 70000
16-07-2018 68000
13-07-2018 70000
12-07-2018 70500
11-07-2018 70500
10-07-2018 70000
09-07-2018 73250
06-07-2018 72500
05-07-2018 72500
04-07-2018 72000
03-07-2018 76000
02-07-2018 75000