Monthly Metal Review

Overview

The month of August was not only marked by volatile markets triggered by sovereign debt problems on both sides of the Atlantic, but also rioting on the streets of English cities, continuing and impending strikes in Chili and Indonesia, hurricanes in the USA, Philippines and Taiwan.

The sell-off in global equities accelerated sharply when Washington stepped back from the brink of a potential US debt default by raising its debt ceiling. The heightened mood of risk aversion continued to fuel demand for the safety of gold, which reached a record high above $1.882,25 an ounce, as well as German, UK and - somewhat paradoxically - US government bonds as S&P’s move failed to shake investor faith in the Treasury market.

Some analysts believe that although ratings downgrade by S&P was justified it will only be temporary. In a speech in Jackson Hole, Ben Bernanke, try to provide optimism for the future of long-term economic growth. Though no new quantitative easing program was declared, a strong and serious appeal was made to the US government to act effectively to promote macroeconomic and financial stability; to adopt effective tax, trade, and regulatory policies; encourage productive investment, both private and public and provide appropriate support for research and development and the implementation of new technologies. Bernanke also pointed out that temporary factors, including the run-up in commodity prices on consumer and business budgets and the effect of the Japanese disaster on global supply chains and production, played a significant part in the weak economic performance of the first half of 2011, however, growth in the second half looks likely to improve. Mr. Bernanke also expressed his belief that the European colleagues fully appreciate what is at stake in the difficult issues they are now confronting and that, over time, they will take all necessary and appropriate steps to address those issues effectively and comprehensively.

During this month investors underlined that high oil and food prices are forcing emerging countries’ central banks to tighten monetary policy. It leads to slowing economic growth in China, India and other big commodity consumers that consequently decreases their demand in base-metals. There was a view expressed that plummeting share prices could mean either that a double-dip recession is all but certain, or that it may be averted as lower prices attract investors.

The list of tumbling resources stocks included Xstrata, which fell 8.5 per cent, Royal Dutch Shell, Europe’s, which fell 5.2 per cent, and Vale of Brazil 6.3 per cent. Kazakhmys and Vedanta Resources fell also as another wave of heavy selling sent the FTSE’s mining index to a one-year low.

Glencore International was one of the sharpest faller losing 7 pct since the IPO pulling the FTSE 100 to an eight-month low. Nevertheless Commodity giant Glencore posted a 50 percent rise in first-half profit despite tough trading markets and said it saw potential opportunities emerging from current market turbulence, as commodity demand remains strong.

During August traders have complained of cases of lengthy and costly delays to withdraw their holdings of key industrial metals from warehouses approved by the London Metal Exchange (LME). The Malaysian port of Johor was one of them. This has once again aroused criticism that the LME has not done enough to ensure timely delivery. In its turn the LME has said that as the global economy improves it is quite typical that metals demand increases and that this may incur logistical challenges.

Nowadays state of affairs testifies to the tight interdependence of world’s markets. It appeals to the elaboration of mutually supportive, socially oriented and environmentally safe economic mechanisms that will underpin further stability of the world economy sustainable development.

Daily Prices

August 2011

Copper
Date(Fix.) ($/MT)
Average 9041.30
31-08-2011 9197
30-08-2011 9128
26-08-2011 9090.5
25-08-2011 8907.5
24-08-2011 8832
23-08-2011 8858.5
22-08-2011 8811.5
19-08-2011 8781.5
18-08-2011 8803
17-08-2011 8870
16-08-2011 8760
15-08-2011 8824
12-08-2011 8851
11-08-2011 8802
10-08-2011 8853.5
09-08-2011 8851
08-08-2011 9039
05-08-2011 9190
04-08-2011 9452
03-08-2011 9549.5
02-08-2011 9630
01-08-2011 9827
Silver
Date(Fix.) ($/OZ)
Average 40.30
31-08-2011 41.35
30-08-2011 40.9
26-08-2011 41.06
25-08-2011 39
24-08-2011 42.08
23-08-2011 42.88
22-08-2011 43.49
19-08-2011 41.98
18-08-2011 40.32
17-08-2011 40.02
16-08-2011 39.36
15-08-2011 39.18
12-08-2011 38.29
11-08-2011 39.18
10-08-2011 38.31
09-08-2011 38.36
08-08-2011 39.86
05-08-2011 39.24
04-08-2011 41.62
03-08-2011 41.04
02-08-2011 39.73
01-08-2011 39.31
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
31-08-2011 -
30-08-2011 -
26-08-2011 -
25-08-2011 -
24-08-2011 -
23-08-2011 -
22-08-2011 -
19-08-2011 -
18-08-2011 -
17-08-2011 -
16-08-2011 -
15-08-2011 -
12-08-2011 -
11-08-2011 -
10-08-2011 -
09-08-2011 -
08-08-2011 -
05-08-2011 -
04-08-2011 -
03-08-2011 -
02-08-2011 -
01-08-2011 -
Date(Fix.) ($/OZ)
Average -
31-08-2011 -
30-08-2011 -
26-08-2011 -
25-08-2011 -
24-08-2011 -
23-08-2011 -
22-08-2011 -
19-08-2011 -
18-08-2011 -
17-08-2011 -
16-08-2011 -
15-08-2011 -
12-08-2011 -
11-08-2011 -
10-08-2011 -
09-08-2011 -
08-08-2011 -
05-08-2011 -
04-08-2011 -
03-08-2011 -
02-08-2011 -
01-08-2011 -
Date(Fix.) ($/OZ)
Average 1755.74
31-08-2011 1819.75
30-08-2011 1808
26-08-2011 1787.5
25-08-2011 1722.75
24-08-2011 1810
23-08-2011 1881.25
22-08-2011 1877.625
19-08-2011 1855
18-08-2011 1809.25
17-08-2011 1791
16-08-2011 1738.75
15-08-2011 1738.5
12-08-2011 1745.5
11-08-2011 1773
10-08-2011 1762.875
09-08-2011 1753
08-08-2011 1701.375
05-08-2011 1661.875
04-08-2011 1671.875
03-08-2011 1668.375
02-08-2011 1630.875
01-08-2011 1618.25
Lead
Date(Fix.) ($/MT)
Average 2404.70
31-08-2011 2555
30-08-2011 2497
26-08-2011 2471
25-08-2011 2399.5
24-08-2011 2344
23-08-2011 2324.5
22-08-2011 2300
19-08-2011 2316
18-08-2011 2340
17-08-2011 2396
16-08-2011 2355
15-08-2011 2355
12-08-2011 2387
11-08-2011 2300.5
10-08-2011 2338.5
09-08-2011 2278
08-08-2011 2345
05-08-2011 2419
04-08-2011 2493
03-08-2011 2522.5
02-08-2011 2539.5
01-08-2011 2627.5
Zinc
Date(Fix.) ($/MT)
Average 2211.80
31-08-2011 2258.5
30-08-2011 2258
26-08-2011 2212
25-08-2011 2182
24-08-2011 2149
23-08-2011 2169
22-08-2011 2141
19-08-2011 2163
18-08-2011 2155.5
17-08-2011 2162
16-08-2011 2128.5
15-08-2011 2152
12-08-2011 2160
11-08-2011 2125.5
10-08-2011 2155
09-08-2011 2095.5
08-08-2011 2148
05-08-2011 2260
04-08-2011 2337
03-08-2011 2362
02-08-2011 2407.5
01-08-2011 2478.5
Tin
Date(Fix.) ($/MT)
Average 24418.64
31-08-2011 24200
30-08-2011 24055
26-08-2011 23725
25-08-2011 23400
24-08-2011 23225
23-08-2011 23600
22-08-2011 23100
19-08-2011 23155
18-08-2011 23805
17-08-2011 24280
16-08-2011 23975
15-08-2011 24600
12-08-2011 24450
11-08-2011 23300
10-08-2011 23800
09-08-2011 23125
08-08-2011 23775
05-08-2011 24730
04-08-2011 25850
03-08-2011 26705
02-08-2011 27795
01-08-2011 28560