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 now accepts the renminbi, China’s currency, as cash collateral against trades. The LME move came after Bank of England approval and reflects the increasing in Chinese firms trading there. The exchange already accepted sterling, the U.S. dollar, euro and yen.
Russia claimed ownership of more than 460,000 square miles of the warming Arctic Ocean, including rights to mineral reserves. Norway and Denmark are submitting claims to the U.N. to extend their Arctic jurisdiction.
Peru’s government refused to weaken envi-ronmental standards at the troubled La Oroya smelter after violent mineworker protests. Miners said envi-ronmental rules discouraged bidding in an auction of bankrupt Doe Run Peru’s smelter. They want emis-sion standards to match Chile’s, allowing three times as much sulfur dioxide per cubic meter. Peru’s envi-ronment minister said Lima won’t ease regulations in one of the world’s most polluted places. Relaxing limits would also expose Peru to over US$500 million in an international lawsuit with Doe Run.
The global oil oversupply should continue into at least late next year, the International Energy Agen-cy reported. Rapidly-growing supplies outpaced sec-ond-quarter consumption by 3 million barrels daily as cheap oil boosted demand.
A late-August global market selloff, based largely on fears China’s economy is fading, threatened
a once-likely mid-September U.S. Federal Reserve interest-rate hike. China’s first-half economy had grown at the slowest pace in a quarter century. The heated Shanghai stock market plunged and a worried Beijing ordered the biggest currency devaluation in over 20 years, staggering markets and sparking a global selloff. When China then cut interest rates and banks’ reserve-rate requirements, it flooded its markets with liquidity. Most international exchanges bounced back some from the three-day rout, but China and Japan lagged.
Eurozone finance ministers approved a third Greek bailout granting Athens as much as US$95 billion over the next three years. The plan was ap-proved by Greek lawmakers and the German Par-liament. The mid-August decision also offers Greece a longer-term approach to financing its staggering debt, now exceeding €315 billion.
Spain and Ireland, hard-hit by the global fi-nancial crisis, are now the fastest-growing countries in the eurozone. With austerity ending, record spending by foreign tourists helped Spain to its fast-est growth quarter since 2007. Ireland’s economy returned to pre-crisis size and grew at six times the rate of the wider eurozone. The IMF expects Spain’s 2015 economy to grow by 3.1 percent and Ireland’s by 4 percent.