Monthly Metal Review
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
Confidence builds with hopes of a sustained recovery in the global economy fuelled by news that the eurozone’s recession may be coming to a close. In August the S&P and oil rose to their highest levels within the last 10 months.
Investors have been caught slightly off guard as the usual relationship between US equities, government bonds and commodity prices seem to splinter. Base metals have been the clear beneficiaries of an improved risk appetite as they move higher.
The commodities market has rallies after receiving better than expected economic data. Nevertheless investors seem to have one overarching fixation as they look to the east at a possible “Bull in a China shop” effect.
Could Chinas volatile stock market trigger a global correction that may eat up much of the stock gains since March? This is a change from the typically sluggish August with thin trading volumes. Leading to a strange and exciting summer as base metal prices seem to rollercoaster pulling back early in the month just to smash through some of its highest levels.
The upbeat housing data to come out of the US and optimistic comments from world key central bankers encouraged investors towards the end of August to buy riskier assets and powering world stocks to a 10-month high.
Mid August aluminium rose 4% at $2,065 a tonne; copper added 3.6% at $6,410 at tonne after hitting $6,450; lead gained 4.3% at $1,925 a tonne; nickel went up 4.9% at $20,605 a tonne after touching $21,225; tin lagged behind a bit rising 1.7% to $15,100 a tonne; zinc rose 3.2% to $1,910 a tonne after reaching $1,945.
Some metals finding support from increasing Chinese imports, due to the government stimulus package that has prompted many infrastructure projects to go fast track to completion. Transamine has secured a strategic partnership with Citadel acquiring approximately 5% of Citadel on a fully diluted basis and obtaining a five year offtake agreement for 50,000 dry metric tons per annum of copper concentrates from the Jabal Sayid copper project.