Monthly Metal Review
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
The London Metal Exchange faces a new, more Asia-friendly future with ownership of the storied exchange transferring to Hong Kong Exchanges and Clearing. HKEx CEO Charles Li promised to tackle long withdrawal queues at LME warehouses.
BHP CEO Marius Kloppers said there will not be a return to record commodities prices seen just a few years ago at any time in the coming decade. Kloppers told Australian miners the supply shortages fueled China's once-roaring growth has been satisfied.
Copper producers are optimistic about the increase in the demand for nonferrous metals in 2013. That increase would be mostly driven by massive spending in infrastructure throughout China. Indeed Chinese officials already announced a plan of $ 150 billion to modernize the country's infrastructure. This an-nouncement was made right before Mr Xi's upcoming nomination as new Chairman of the People's Republic of China for a ten year term.
Late-October data showed the British economy inching out of recession with 1 percent Q3 growth. German business confidence, measured by the Ifo Institute, was at its in lowest in 2.5 years. French business activity was down for the eighth month straight. and three French banks, including BNP Paribas, were downgraded by Standard & Poor's.
Standard & Poor's cut its credit rating for Spain's largest lenders. Santander said Q3 profits fell more than 90 percent after taking provisions for bad prop-erty loans.
October opened with public sentiment in China up. The World Bank forecast 7.7-percent full-year China growth and cut 2012 growth prediction for developing Asia-Pacific economies to 7.2 percent from a May 7.6. China's economy grew 7.4 percent in Q3 on year. Data showed industrial production up 9.2 per cent on year in September compared with 8.9 in August.
China's inflation rate edged lower in September, to 1.9 from 2 percent. Exports rose 9.9 percent on year. Exports to the U.S. rose 5.5 percent in September on year but exports to Europe fell 10.7 percent on year.
China-Japan relations remained tense, with plunging sales of Japanese goods and vehicles in China in a dispute over uninhabited islands. China's finance minister and central-bank head skipped the IMF's Tokyo meeting.
The Q3 US economy grew more than expected, expanding at an annualised 2 percent rate, a figure bolstered by government-spending increases and new-housing construction. The jobless rate fell in September to 7.8, making the rate the lowest since January, 2009. US New-home construction jumped, building-permit applications were upped, and new-home sales rose. Home-mortgage-refinance applica-tions surged in the wake of the Federal Reserve's QE3 pledge to buy $40 billion in mortgage-backed securities monthly. The strenghthening US housing market should create a more positive sentiment in copper.
Eyes across the world will focus on the US on the first Tuesday of November for elections as tight races will determine not only the president, but the party majorities both in both chambers of their gov-ernment.