Monthly Metal Review

Overview

This month it was reported that China’s top planning body was warming up to permit foreign commodities exchanges, to open warehouses in free-trade zones. Which if successful, could give the Lon-don Metal Exchange (LME) coveted mainland access. The LME is highly likely to be the first in line for approval, possibly in Shanghai’s new free-trade zone.

However, China's annual GDP growth slowed to 7.5 percent in the second quarter from 7.7 in the first, matching forecasts but putting pressure on officials favoring domestic consumption before growth. China uses about 42 percent of the world's copper and is the world’s largest car market by volume. China passenger vehicle shipments were 1.4 million units in June, up 9.7 percent on-year, according to the China Passenger Car Association.

Not far in Indonesia, underground production resumed at Freeport-McMoRan’s Grasberg mine, following an Indonesian investigation of fatal May accidents. Grasberg is the world’s largest gold and third-largest copper mine.

The Democratic Republic of Congo (DRC) postponed enforcement of its threatened ban on export of copper and cobalt concentrates until January 1. DRC officials have been reported hiking taxes on cobalt-concentrate exports by $40 per metric tonne. The ban would require miners to process metals and minerals in the DRC.

Eurozone private-sector industry returned to growth in July, according to the Market Eurozone Purchasing Managers' Index (PMI). The business-output index rose from 48.7 in June to July’s 50.4, an 18-month high. European Central Bank (ECB) Presi-dent Mario Draghi pledged to keep interest rates low after borrowing costs for euro-region firms rose in June to an eight-month high.
While Europe’s June new-car sales were the weakest since 1996, with demand falling to 1.134-million vehicles, down 5.6 percent from last June. First-half sales dropped 6.6 percent. The UK was the only major market to expand, up 13.4 percent in June and 10 percent for the first half. First-half sales in Germany fell 8.1 percent on-year. France plunged 11.2 percent.

U.S. Federal Reserve Chairman Ben Bernanke confirmed plans to taper asset purchases later this year, but said reduction must be tied to sustained labor-market improvement or inflation increase. He said the $85-billion monthly stimulus helping keep interest rates low would continue if needed. U.S. employers added a robust 195,000 jobs in June whilst new-home sales surged 8.3 percent from May to an annualized 497,000, the highest in five years.

LME warehouses were reported reducing incentives paid to attract metal into locations like Detroit to cut back queues. The exchange said it may require warehouses to deliver out more metal than loaded in where metal-withdrawal queues exceed 100 days. Participants will be consulted until Sept. 30 and the board is to review the plan in October. If approved, it would take effect April 1.

Bank-owned warehouses faced scrutiny. The U.S. Federal Reserve was reviewing a 2003 decision allowing bank holding companies to trade physical commodities. A Senate panel questioned whether banks should control warehouses and other infra-structure used to store and transport essential goods. The Commodity Futures Trading Commission was gathering information on warehouse operations.

Daily Prices

July 2013

Copper
Date(Fix.) ($/MT)
Average 6892.98
31-07-2013 6805
30-07-2013 6752
29-07-2013 6860.5
26-07-2013 6905.5
25-07-2013 6927.5
24-07-2013 7076.5
23-07-2013 6961
22-07-2013 6980
19-07-2013 6920
18-07-2013 6855.5
17-07-2013 6924
16-07-2013 6936.5
15-07-2013 6891.5
12-07-2013 6923
11-07-2013 6995.5
10-07-2013 6780
09-07-2013 6719
08-07-2013 6765
05-07-2013 6821
04-07-2013 6920.5
03-07-2013 6922
02-07-2013 6980
01-07-2013 6917
Silver
Date(Fix.) ($/OZ)
Average 19.71
31-07-2013 19.94
30-07-2013 19.68
29-07-2013 20.1
26-07-2013 20.02
25-07-2013 19.92
24-07-2013 20.395
23-07-2013 20.18
22-07-2013 19.95
19-07-2013 19.42
18-07-2013 19.49
17-07-2013 19.83
16-07-2013 19.95
15-07-2013 19.82
12-07-2013 19.66
11-07-2013 19.85
10-07-2013 19.37
09-07-2013 19.1
08-07-2013 19.16
05-07-2013 19.32
04-07-2013 19.57
03-07-2013 19.55
02-07-2013 19.62
01-07-2013 19.44
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1284.35
31-07-2013 1331.5
30-07-2013 1322.25
29-07-2013 1330.75
26-07-2013 1327.75
25-07-2013 1312
24-07-2013 1340
23-07-2013 1326.75
22-07-2013 1313.75
19-07-2013 1286
18-07-2013 1279.75
17-07-2013 1284.25
16-07-2013 1286
15-07-2013 1281.25
12-07-2013 1275
11-07-2013 1280.75
10-07-2013 1252.25
09-07-2013 1252
08-07-2013 1225.5
05-07-2013 1232.75
04-07-2013 1249.5
03-07-2013 1246
02-07-2013 1260.75
01-07-2013 1243.5
Date(Fix.) ($/OZ)
Average 1285.54
31-07-2013 1323
30-07-2013 1323.2
29-07-2013 1330.25
26-07-2013 1329.375
25-07-2013 1319
24-07-2013 1337.5
23-07-2013 1330.125
22-07-2013 1320.375
19-07-2013 1290.875
18-07-2013 1281.5
17-07-2013 1290.75
16-07-2013 1288.75
15-07-2013 1283
12-07-2013 1277.375
11-07-2013 1282.875
10-07-2013 1254.125
09-07-2013 1253.75
08-07-2013 1230.375
05-07-2013 1222.75
04-07-2013 1250.625
03-07-2013 1248
02-07-2013 1256.625
01-07-2013 1243.125
Date(Fix.) ($/OZ)
Average 1286.72
31-07-2013 1314.5
30-07-2013 1324.15
29-07-2013 1329.75
26-07-2013 1331
25-07-2013 1326
24-07-2013 1335
23-07-2013 1333.5
22-07-2013 1327
19-07-2013 1295.75
18-07-2013 1283.25
17-07-2013 1297.25
16-07-2013 1291.5
15-07-2013 1284.75
12-07-2013 1279.75
11-07-2013 1285
10-07-2013 1256
09-07-2013 1255.5
08-07-2013 1235.25
05-07-2013 1212.75
04-07-2013 1251.75
03-07-2013 1250
02-07-2013 1252.5
01-07-2013 1242.75
Lead
Date(Fix.) ($/MT)
Average 2048.24
31-07-2013 2033.5
30-07-2013 2029
29-07-2013 2056
26-07-2013 2060.5
25-07-2013 2050
24-07-2013 2063
23-07-2013 2039.5
22-07-2013 2036
19-07-2013 2036
18-07-2013 2016.5
17-07-2013 2037.5
16-07-2013 2044.5
15-07-2013 2049.5
12-07-2013 2050
11-07-2013 2093
10-07-2013 2046
09-07-2013 2029
08-07-2013 2032
05-07-2013 2035.5
04-07-2013 2067.5
03-07-2013 2058
02-07-2013 2088
01-07-2013 2059
Zinc
Date(Fix.) ($/MT)
Average 1835.89
31-07-2013 1793
30-07-2013 1801
29-07-2013 1809.5
26-07-2013 1832.5
25-07-2013 1839
24-07-2013 1863
23-07-2013 1837.5
22-07-2013 1840
19-07-2013 1834
18-07-2013 1821.5
17-07-2013 1832
16-07-2013 1843.5
15-07-2013 1856
12-07-2013 1861
11-07-2013 1885.5
10-07-2013 1846
09-07-2013 1825
08-07-2013 1819
05-07-2013 1805.5
04-07-2013 1840.5
03-07-2013 1851.5
02-07-2013 1856
01-07-2013 1833
Tin
Date(Fix.) ($/MT)
Average 19588.70
31-07-2013 19895
30-07-2013 19760
29-07-2013 19395
26-07-2013 19315
25-07-2013 19275
24-07-2013 19605
23-07-2013 19400
22-07-2013 19500
19-07-2013 19600
18-07-2013 19355
17-07-2013 19460
16-07-2013 19395
15-07-2013 19305
12-07-2013 19450
11-07-2013 19700
10-07-2013 19680
09-07-2013 19370
08-07-2013 19300
05-07-2013 19700
04-07-2013 20005
03-07-2013 20095
02-07-2013 20225
01-07-2013 19755
Nickel
Date(Fix.) ($/MT)
Average 13705.00
31-07-2013 13570
30-07-2013 13435
29-07-2013 13640
26-07-2013 13830
25-07-2013 14050
24-07-2013 14120
23-07-2013 13975
22-07-2013 14055
19-07-2013 13980
18-07-2013 13885
17-07-2013 13810
16-07-2013 13535
15-07-2013 13380
12-07-2013 13565
11-07-2013 13655
10-07-2013 13475
09-07-2013 13160
08-07-2013 13325
05-07-2013 13530
04-07-2013 13685
03-07-2013 13805
02-07-2013 13915
01-07-2013 13835
Cobalt
Date(Fix.) ($/MT)
Average 29374.35
31-07-2013 25555
30-07-2013 26300
29-07-2013 28000
26-07-2013 27500
25-07-2013 28500
24-07-2013 29000
23-07-2013 29250
22-07-2013 29250
19-07-2013 29600
18-07-2013 29400
17-07-2013 28700
16-07-2013 29800
15-07-2013 30300
12-07-2013 30050
11-07-2013 30100
10-07-2013 29600
09-07-2013 29500
08-07-2013 30100
05-07-2013 30000
04-07-2013 30500
03-07-2013 30005
02-07-2013 32300
01-07-2013 32300