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 International Monetary Fund trimmed its Eurozone economic-growth forecasts in light of the UK's leave vote, predicting EU growth of 1.6 percent in 2016 and 1.4 percent next year. That replaced its pre-Brexit forecast of 1.7-percent growth for both years. It said medium-term growth prospects for the bloc were mediocre on high unemployment and debt.
U.S. employers added a robust 287,000 new jobs in June, the largest monthly jobs expansion since last October. It also quashed concerns that domestic job growth was weakening on Brexit fears and a weaker May jobs report.
Nickel and zinc rallied to multi-month highs. On the LME, nickel hit an 8-month high; zinc reached its best in 14 months. Analysts credited-Philippines nickel-crackdown fears, a weaker dollar and Chinese-government stimuli that sparked infrastructure and transport sectors. The global zinc-market deficit was 68,700 tonnes in the first five months of 2016, the International Lead and Zinc Study Group said.
Freeport Indonesia faces an 8 August expiration of its copper-concentrate export permit. The local arm of Arizona-based Freeport McMoRan, Freeport Indo-nesia has asked the Jakarta government for another six-month export permit. Permits, to be renewable until 2017 when a full ore-export ban is to start, were in-tended to spur on-shore metals processing. Exporters pay higher taxes and royalties for shipments resump-tion and must show progress in developing local smelters.
The London Metal Exchange said it will cap metal-storage charges that licensed warehouses can levy. Critics have alleged that long queues distorted prices. The LME said it will limit maximum rental rates for five years, beginning in April 2017. It will set a maximum from the average of the highest pub-lished rates for each metal and country. That would hold for five years, then be updated yearly based on each country’s consumer price index.
In order to support potential restart of the La Oroya smelter, not in operation currently, the new president of Peru might consider adjusting the air-quality regulation. It closed in 2009 amid pollution and financing troubles and faces 27 August liquidation unless a buyer is found. President Pedro Kuszynski said Peru’s mining exports could see a 25-percent value boost from more smelting and refining capacity.
The new Philippines government began audit-ing mines and froze new-project approvals. Two mines in Zambales province were suspended, as were Berong Nickel Palawan operations and others. Goldman Sachs said a quarter of Philippines nickel-mine output will be lost from the market for six months.