Monthly Metal Review

Overview

The turmoil witnessed in the world’s financial system has now spread to the real economy, with levels of economic activity falling sharply in the world’s mature and developing economies alike.
 Many of the world’s mature economies including the US, the UK, Germany and Japan have slid into recession and it is only a matter of time before more join them. The consequent fall off in demand is feeding through to the manufacturing sectors of the developing world, particularly in Asia, and even the Chinese economic powerhouse has been forced to slow.
According to the latest Purchasing Managers’ Indices (PMI) manufacturing activity in November fell to record lows in many of the major economies, including Japan, the UK, Germany and China. Meanwhile in the US, manufacturing activity declined to its lowest level since 1982 and in India, activity declined for the first time in three and a half years. Elsewhere, in the auto sector, car manufacturers globally are cutting production in response to collapsing consumer demand, especially in Europe where sales plunged by a massive 25% year on year in November.
In the US, sales of newly built single-family homes fell 2.9% in November to the weakest level since 1991. Sales of US existing homes fell 8.6% with house prices down 13.2% from a year earlier. In the US, The scale of the deceleration of economic activity prompted the Federal Reserve to take the unprecedented step of cutting US interest rates to close to zero. The Fed also signalled its intention to try to stimulate the economy by effectively printing money. The move prompted the dollar to fall against the major currencies. In China, The People’s Bank of China cut its one-year lending rate by 27bps to 5.31% and its deposit rate by the same amount to 2.25%.
The reserve requirement will go down to 15.5% for large banks and to 13.5% for smaller ones effective on December 25. The Chinese government also plans to go on a massive base metals buying spree to feed its stockpile and rescue local producers as physical buying all but grinds to a halt in the market.This includes 150,000 tonnes of copper, 300,000 tonnes of aluminium, 150,000 tonnes of lead and 300,000 tonnes of zinc. US Vice President elect Joe Biden said the incoming US administration is nearing agreement with Congressional Democrats on huge emergency spending bill intended to create 3 million jobs over the next 2 years.
ECB President Trichet said markets were underestimating the impact of central banks’ and government response to the financial crisis. He urged European countries that still have budgetary room for manoeuvre to use it to stimulate growth. Germany edged closer to a 2nd package of stimulus measures worth $35 billion.

Daily Prices

December 2008

Copper
Date(Fix.) ($/MT)
Average 3071.98
31-12-2008 2902
30-12-2008 2812
29-12-2008 2843
24-12-2008 2770
23-12-2008 2850.5
22-12-2008 2910.5
19-12-2008 2826
18-12-2008 2885.5
17-12-2008 3000
16-12-2008 3020.5
15-12-2008 3075.5
12-12-2008 2982
11-12-2008 3232.5
10-12-2008 3180.5
09-12-2008 3120
08-12-2008 3141
05-12-2008 3050.5
04-12-2008 3360.5
03-12-2008 3423
02-12-2008 3530.5
01-12-2008 3595.5
Silver
Date(Fix.) ($/OZ)
Average 10.29
31-12-2008 10.79
30-12-2008 10.83
29-12-2008 10.93
24-12-2008 10.29
23-12-2008 10.7
22-12-2008 10.97
19-12-2008 10.61
18-12-2008 11.29
17-12-2008 10.98
16-12-2008 10.5
15-12-2008 10.33
12-12-2008 10.07
11-12-2008 10.39
10-12-2008 9.96
09-12-2008 9.83
08-12-2008 9.73
05-12-2008 9.46
04-12-2008 9.58
03-12-2008 9.43
02-12-2008 9.41
01-12-2008 9.91
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
31-12-2008 -
30-12-2008 -
29-12-2008 -
24-12-2008 -
23-12-2008 -
22-12-2008 -
19-12-2008 -
18-12-2008 -
17-12-2008 -
16-12-2008 -
15-12-2008 -
12-12-2008 -
11-12-2008 -
10-12-2008 -
09-12-2008 -
08-12-2008 -
05-12-2008 -
04-12-2008 -
03-12-2008 -
02-12-2008 -
01-12-2008 -
Date(Fix.) ($/OZ)
Average -
31-12-2008 -
30-12-2008 -
29-12-2008 -
24-12-2008 -
23-12-2008 -
22-12-2008 -
19-12-2008 -
18-12-2008 -
17-12-2008 -
16-12-2008 -
15-12-2008 -
12-12-2008 -
11-12-2008 -
10-12-2008 -
09-12-2008 -
08-12-2008 -
05-12-2008 -
04-12-2008 -
03-12-2008 -
02-12-2008 -
01-12-2008 -
Date(Fix.) ($/OZ)
Average 819.39
31-12-2008 865
30-12-2008 869.75
29-12-2008 880.25
24-12-2008 836.75
23-12-2008 843.5
22-12-2008 849
19-12-2008 835.75
18-12-2008 855.25
17-12-2008 870
16-12-2008 838.25
15-12-2008 826
12-12-2008 826.5
11-12-2008 827.5
10-12-2008 802.25
09-12-2008 767.75
08-12-2008 767.25
05-12-2008 749
04-12-2008 773.25
03-12-2008 766.25
02-12-2008 780
01-12-2008 778
Lead
Date(Fix.) ($/MT)
Average 962.88
31-12-2008 949
30-12-2008 945
29-12-2008 900.5
24-12-2008 900
23-12-2008 907
22-12-2008 880
19-12-2008 882
18-12-2008 945.5
17-12-2008 967
16-12-2008 980
15-12-2008 1016
12-12-2008 982
11-12-2008 1031
10-12-2008 970.5
09-12-2008 968
08-12-2008 936
05-12-2008 915
04-12-2008 1000
03-12-2008 1003
02-12-2008 1060
01-12-2008 1083
Zinc
Date(Fix.) ($/MT)
Average 1100.57
31-12-2008 1120.5
30-12-2008 1090
29-12-2008 1106
24-12-2008 1100
23-12-2008 1133
22-12-2008 1130.5
19-12-2008 1082
18-12-2008 1067
17-12-2008 1045.5
16-12-2008 1054.5
15-12-2008 1063.5
12-12-2008 1042
11-12-2008 1084
10-12-2008 1090
09-12-2008 1097
08-12-2008 1080
05-12-2008 1096.5
04-12-2008 1135
03-12-2008 1141
02-12-2008 1164
01-12-2008 1190
Tin
Date(Fix.) ($/MT)
Average 11240.00
31-12-2008 10355
30-12-2008 10070
29-12-2008 10000
24-12-2008 10000
23-12-2008 10005
22-12-2008 10505
19-12-2008 10600
18-12-2008 11000
17-12-2008 11150
16-12-2008 11400
15-12-2008 11750
12-12-2008 11505
11-12-2008 12250
10-12-2008 12000
09-12-2008 11800
08-12-2008 11505
05-12-2008 11585
04-12-2008 11705
03-12-2008 11900
02-12-2008 12105
01-12-2008 12850