Monthly Metal Review
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
On November 6th U.S. President Barack Obama trounced Republican Mitt Romney to win another four-year term. Even though the president and his staff must now engineer deficit reductions before a year-end "financial cliff" deadline, data shows that the U.S. has experienced the strongest improvement in manufacturing conditions over the past five months. This news along with positive signs from both the U.S. housing market and the Chinese economy have strengthened non-ferrous metals prices on the London Metal Exchange in the second half of November.
November's HSBC China manufacturing Purchasing Managers' Index, PMI, rose 49.5 to 50.4; above the 50 expansion mark and marked a third consecutive increase. October vehicle sales gained 3 percent YoY in China, where the Communist Party Congress introduced new leaders, headed by party chief Xi Jinping. Analysts said Xi needs at least two years to strengthen his position.
The eurozone returned to recession. Composite PMI inched from 45.7 to 45.8 with November consumer confidence at a 42-month low. German Chancellor Angela Merkel said the crisis could last another five years. Germany's GDP rose 0.2 percent from Q2, when it gained 0.3 percent. Q3 French GDP rose 0.2 percent. The Bank of England said Britain faces weak recovery and high inflation, cutting 2013's growth forecast from 1.8 to 1.2 percent. Hitachi expects to create 18,000 UK jobs during multi-year building of British nuclear-power plants.
Pressured Deutsche Bank is sacking 2,000 em-ployees. UBS, with a $2.34-billion Q3 loss, is to shed 10,000. ING, with Q3 profit down 64 percent, will trim 2,350. China's sovereign wealth fund paid $727 million for a 10 percent stake in London's Heathrow airport.
Japan's economic growth slowed to an annualized 3.5 percent rate leading to September, wounded by declines in exports to Europe and China.
The Greek parliament imposed more wage, pension and job cuts as the price of EU aid. Anti-government, anti-immigrant parties are reported growing. Cypress is in line for an EU/IMF bailout.
LME CEO Martin Abbott said regulatory approval of the LME's sale to Hong Kong Exchanges and Clearing was on track for December.
Proposed London Metal Exchange rules changes would require owners of LME-monitored ware-houses to increase load-out rates. The changes follow an LME review and European Commission interest in steep surcharges and extended wait times to withdraw metal. Rules could take effect April 1, forcing warehouses with 30,000 tonnes of a metal in queue to deliver out an additional 500 tonnes of other metals daily. Tin and nickel rules already require at least 60 tonnes delivered out daily. Barclays dropped LME open-outcry floor trading, downgrading to less-expensive electronic- and phone-trading membership.