Monthly Metal Review

Overview

During the month of July, financial markets have been under pressure, from the late vote on the US budget.

Gold and other precious metals have seen their prices rise again, while the US dollar initially weak, recovered grounds at 1.42 against the Euro, once the vote went through.

Meanwhile some economic indicators are not showing any strong expansion in the quarters to come and this has for the time being just affected the equity markets.

In Chile, the strike at Escondida mine is lasting, as negotiations seem to be difficult and the mine has had to declare “Force Majeure”. Some other Chilean mines seem to also risk some strikes. On the back of this situation, copper prices have been able to rise during June, reaching about 9700 $ towards the end of June.

Today, in spite of economic worries in almost every part of the world, consumption of most commodities continues to grow - in some cases, strongly.

And yet investors have turned tail. Their positioning in US commodity futures, as reported by the Commodity Futures Trading Commission, is the least bullish since July last year.

Investors have become increasingly unsure about the outlook for commodities amid signs that tighter credit conditions are holding back growth in China, while high energy prices and the spectre of sovereign default have knocked US and European growth.

Traders and analysts say that the underlying fundamentals of physical supply and demand remain robust for many commodities. Indeed, there are early signs of a pick-up in interest in the wake of recent price falls.

According to the opinion of market specialists investors have overreacted to the negative news. They feel that it is expected to have a tremendous price increase in commodities in the next quarter and it is a good time to buy. On the Asian market China has issued in July fresh orders to slash capacity at steel and base metal smelters as it revamps its industrial sector. The move could backfire and boost capacities instead, as outdated units are replaced and modernized.

The world's top consumer of copper, aluminum and steel told local governments to phase out more than 2 million tonnes of aluminum, copper, lead and zinc smelting capacity in a plan to decrease energy-heavy and polluting industries, around 13 percent more than objectives set in May.

It was confirmed in July that logistics and warehousing company CWT Group will acquire a major stake in Marc Rich-founded MRI Trading for $94 million. CWT Group will have access to as much as 16.4% of the addressable market for copper concentrates. CWT certainly sees two opportunities: to profit from metal trading, and through its metal traders to ensure that its warehouses are stocked, expanded and used optimally. They say that all eyes are now on independent warehousing company Steinweg. Will it too seek to integrate itself with a trading company? Recent developments testify to the fact that the market of minerals remains optimistic, intriguing and highly promising.

Daily Prices

July 2011

Copper
Date(Fix.) ($/MT)
Average 9619.24
29-07-2011 9731
28-07-2011 9744
27-07-2011 9736
26-07-2011 9778
25-07-2011 9620
22-07-2011 9698
21-07-2011 9607
20-07-2011 9765.5
19-07-2011 9755
18-07-2011 9690
15-07-2011 9606
14-07-2011 9655
13-07-2011 9658.5
12-07-2011 9500.5
11-07-2011 9556
08-07-2011 9713
07-07-2011 9537
06-07-2011 9432
05-07-2011 9405.5
04-07-2011 9411
01-07-2011 9405
Silver
Date(Fix.) ($/OZ)
Average 37.92
29-07-2011 39.63
28-07-2011 40.19
27-07-2011 40.81
26-07-2011 40.34
25-07-2011 40.78
22-07-2011 39.67
21-07-2011 39.78
20-07-2011 38.59
19-07-2011 40.32
18-07-2011 40.33
15-07-2011 38.17
14-07-2011 39.4
13-07-2011 36.75
12-07-2011 34.91
11-07-2011 36.36
08-07-2011 36.28
07-07-2011 35.86
06-07-2011 35.38
05-07-2011 34.76
04-07-2011 34.1
01-07-2011 33.85
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
29-07-2011 -
28-07-2011 -
27-07-2011 -
26-07-2011 -
25-07-2011 -
22-07-2011 -
21-07-2011 -
20-07-2011 -
19-07-2011 -
18-07-2011 -
15-07-2011 -
14-07-2011 -
13-07-2011 -
12-07-2011 -
11-07-2011 -
08-07-2011 -
07-07-2011 -
06-07-2011 -
05-07-2011 -
04-07-2011 -
01-07-2011 -
Date(Fix.) ($/OZ)
Average -
29-07-2011 -
28-07-2011 -
27-07-2011 -
26-07-2011 -
25-07-2011 -
22-07-2011 -
21-07-2011 -
20-07-2011 -
19-07-2011 -
18-07-2011 -
15-07-2011 -
14-07-2011 -
13-07-2011 -
12-07-2011 -
11-07-2011 -
08-07-2011 -
07-07-2011 -
06-07-2011 -
05-07-2011 -
04-07-2011 -
01-07-2011 -
Date(Fix.) ($/OZ)
Average 1570.68
29-07-2011 1621.125
28-07-2011 1615.5
27-07-2011 1623
26-07-2011 1611.375
25-07-2011 1616
22-07-2011 1595
21-07-2011 1600.75
20-07-2011 1585.125
19-07-2011 1601.5
18-07-2011 1598.625
15-07-2011 1582.75
14-07-2011 1591.5
13-07-2011 1575.5
12-07-2011 1547.5
11-07-2011 1549.5
08-07-2011 1533.75
07-07-2011 1526.875
06-07-2011 1521.525
05-07-2011 1504.375
04-07-2011 1495.125
01-07-2011 1487.875
Lead
Date(Fix.) ($/MT)
Average 2682.60
29-07-2011 2613.5
28-07-2011 2680
27-07-2011 2694
26-07-2011 2705.5
25-07-2011 2670
22-07-2011 2707.5
21-07-2011 2667
20-07-2011 2720
19-07-2011 2741.5
18-07-2011 2730
15-07-2011 2650
14-07-2011 2687
13-07-2011 2745
12-07-2011 2660
11-07-2011 2650.5
08-07-2011 2706
07-07-2011 2694
06-07-2011 2661
05-07-2011 2660.5
04-07-2011 2655
01-07-2011 2636.5
Zinc
Date(Fix.) ($/MT)
Average 2390.55
29-07-2011 2470
28-07-2011 2479.5
27-07-2011 2487
26-07-2011 2495
25-07-2011 2426
22-07-2011 2436.5
21-07-2011 2409.5
20-07-2011 2432.5
19-07-2011 2438
18-07-2011 2398.5
15-07-2011 2320
14-07-2011 2339
13-07-2011 2345.5
12-07-2011 2302
11-07-2011 2295
08-07-2011 2370
07-07-2011 2357
06-07-2011 2355
05-07-2011 2363
04-07-2011 2343
01-07-2011 2339.5
Tin
Date(Fix.) ($/MT)
Average 27312.86
29-07-2011 28150
28-07-2011 28750
27-07-2011 28800
26-07-2011 28350
25-07-2011 28145
22-07-2011 28400
21-07-2011 27950
20-07-2011 27895
19-07-2011 27555
18-07-2011 27000
15-07-2011 27260
14-07-2011 27400
13-07-2011 26605
12-07-2011 26300
11-07-2011 26355
08-07-2011 27475
07-07-2011 27135
06-07-2011 26475
05-07-2011 26080
04-07-2011 25640
01-07-2011 25850