Monthly Metal Review
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
Gold plunged more than 4 percent down to $1,223.54 an ounce, a far cry from its 2011 September recorded high of $1920.30 an ounce. Other commodity prices slid with equities and bonds, after the U.S. Federal Reserve signalled consideration of a phased reduction of its $85-billion-monthly monetary-stimulus programme. Analysts blamed fears of higher interest rates and concerns about poor China Purchasing Managers Index (PMI) data and a spike in China’s interbank lending rates.
China's factory activity settled to a nine-month low in June as demand faltered, helping push copper to a 20-month low of $6’637.5 per tonne. The HSBC flash PMI fell to 48.3 from May's 49.2. The survey also saw fewer new orders. Analysts said Beijing would tolerate short-term pain to contain financial risks and secure sustainable long-term growth.
Brazil’s proposed a mining-code update could double the top royalty rate and set stricter rules for new mines. However it was reported the top proposed rate at just one-third the basic rate charged by Australian states. The bill does not include a windfall profits tax, a measure that prompted Canada’s Kinross Gold to abandon a project in Ecuador.
Hong Kong Exchanges & Clearing (HKEx) wants a replacement for resigning London Metal Exchange (LME) CEO Martin Abbott in the next three months, said HKEx executive Romnesh Lamba. Abbott became CEO in 2006 and saw yearly turnover increase from 2005’s $4.5 trillion to $14.5 trillion. He guided December’s $2.2-billion sale of the LME to HKEx. His early June resignation announcement said he would stay until year’s end.
Freeport McMoRan slowly resumed open-pit mining at its Grasberg copper-gold complex after an Indonesia investigation and more than a month after a training-tunnel collapse.
China’s stockpiling agency used lower prices to buy base metals on the international market for the first time since 2009. The State Reserves Bureau bought some 30,000 tonnes of nickel, equivalent to one-sixth the stocks in LME warehouses.
The London Metal Exchange approved Taiwan’s Kaohsiung port as a new delivery loca-tion; its ninth in Asia. LME-approved warehouses there will be able to accept all major traded non-ferrous metals contracts.
The World Bank lowered its 2013 global economic-growth forecast from January’s 2.4-percent projection to 2.2 percent. It predicted 2014 global growth of 3 percent. Germany's central bank trimmed its 2013 growth forecast from 0.4 percent to 0.3 percent, but said Ger-many’s economy is slowly gaining as the world economy gains momentum. The June Ifo business-confidence index, ticked higher for a second month, rising to 105.9 from May’s 105.7.
At June’s Group of Eight (G8) economic summit, the UK, Germany, Canada, France, Russia, U.S., Italy, and Japan pledged closer scrutiny of mining companies’ payments to governments. To counter tax evasion and money laundering, they called for land-transaction transparency, legitimate minerals sourcing, and disclosure of true ownership. Canada said resource companies there would be required to disclose all payments to foreign and domestic governments.