Monthly Metal Review

Overview (March 2018)

The U.S. Federal Reserve raised interest rates by a quarter percentage point and forecast two more hikes this year. The Fed action was soon overshadowed when the Trump administration said it would slap punitive tariffs on up to $60 billion of Chinese imports. Euro zone industrial production was weaker than ex-pected in January. the EU's statistics office said. Production in the 19 euro countries fell by 1.0 percent on-month in January for a 2.7 percent on-year rise. Eurostat also revised upwards on-year data for December to 5.3 percent growth from the previously reported 5.2 percent. Energy had the biggest downward pull because its production fell 6.6 percent on-month. The outlook for global growth has weakened in recent months and that combined with a pick-up in trade tensions, which started with President Donald Trump’s imposition of tariffs on aluminium and steel, have soured bullish sentiment across a broad range of markets, including metals and equities. In turn, this has prompted investors to reduce risk and lack of upside progress in prices has led to stale long liquidation. The LME Index (LMEX)) of the six primary non-ferrous metals started the year at 3,419, it peaked in mid-February at 3,464 and by the end of March had fallen to 3,204, a drop of 7.5 percent. Although trade tensions are the latest headwind, it does look as though sentiment started to weaken as 2017 rolled into 2018. After a bullish 2017, expectations were running high for 2018, but the year has got off to a slower than expected start and there are few signs of it having picked up after the Chi-nese Lunar New Year, which is adding to the market’s disappointment. Given metal prices climbed at such a fast pace in 2016 and 2017, LMEX climbed 30 percent in 2016 and 28 percent in 2017, it did look as though prices were running ahead of the fundamentals last year and as such it is not too surprising that the up trends have paused and prices are correcting. From the 2016 low to the 2018 high, LMEX climbed 78 percent, so a 7.5 percent correction is not too alarming. World stocks came off six-week lows and stock fu-tures jumped in late month on optimism that the U.S. and China would negotiate on trade, easing trade-war fears. U.S. job growth surged as the economy added 313,000 jobs in February, including the biggest rise in con-struction jobs since 2007. But the annual earnings growth rate slowed to 2.6 percent and the unemployment rate held at 4.1 percent. The US economy is in its ninth year of eco-nomic expansion. BHP CEO Andrew Mackenzie, who heads the world’s biggest mining company, said the mining industry must resist calls for protectionism because free trade is vital to a healthy global economy. He said free trade allows competition on a level playing field. China’s tough campaign against choking air pollution in industrial areas is to get rougher. Beijing will set more stringent air-quality targets under a new three-year plan, as it prepares to strengthen its nationwide crackdown on pol-luters. The government will also set up a nationwide inspec-tion system this year that could impact smelters.

Daily Prices

April 2018

Copper
Date(Fix.) ($/MT)
Average 6796.17
18-04-2018 6936
17-04-2018 6784
16-04-2018 6811.5
13-04-2018 6830
12-04-2018 6756
11-04-2018 6930.5
10-04-2018 6888
09-04-2018 6767
06-04-2018 6703
05-04-2018 6767
04-04-2018 6625
03-04-2018 6756
Silver
Date(Fix.) ($/OZ)
Average 16.52
18-04-2018 16.945
17-04-2018 16.625
16-04-2018 16.6
13-04-2018 16.505
12-04-2018 16.655
11-04-2018 16.565
10-04-2018 16.49
09-04-2018 16.34
06-04-2018 16.275
05-04-2018 16.305
04-04-2018 16.46
03-04-2018 16.52
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1338.55
18-04-2018 1346.55
17-04-2018 1342.95
16-04-2018 1344.4
13-04-2018 1340.75
12-04-2018 1345.9
11-04-2018 1345.2
10-04-2018 1335.95
09-04-2018 1328.5
06-04-2018 1325.6
05-04-2018 1327.05
04-04-2018 1343.15
03-04-2018 1336.6
Date(Fix.) ($/OZ)
Average 1339.24
18-04-2018 1349
17-04-2018 1342.525
16-04-2018 1346.875
13-04-2018 1342.225
12-04-2018 1343.625
11-04-2018 1347.975
10-04-2018 1337.45
09-04-2018 1330.225
06-04-2018 1328.4
05-04-2018 1327.375
04-04-2018 1340.225
03-04-2018 1335.025
Date(Fix.) ($/OZ)
Average 1339.94
18-04-2018 1351.45
17-04-2018 1342.1
16-04-2018 1349.35
13-04-2018 1343.7
12-04-2018 1341.35
11-04-2018 1350.75
10-04-2018 1338.95
09-04-2018 1331.95
06-04-2018 1331.2
05-04-2018 1327.7
04-04-2018 1337.3
03-04-2018 1333.45
Lead
Date(Fix.) ($/MT)
Average 2369.29
18-04-2018 2378
17-04-2018 2342
16-04-2018 2341.5
13-04-2018 2329
12-04-2018 2333
11-04-2018 2388
10-04-2018 2401
09-04-2018 2397
06-04-2018 2358.5
05-04-2018 2383.5
04-04-2018 2380
03-04-2018 2400
Zinc
Date(Fix.) ($/MT)
Average 3194.67
18-04-2018 3186.5
17-04-2018 3115
16-04-2018 3116
13-04-2018 3121
12-04-2018 3115
11-04-2018 3236.5
10-04-2018 3240
09-04-2018 3216.5
06-04-2018 3222
05-04-2018 3234
04-04-2018 3249
03-04-2018 3284.5
Tin
Date(Fix.) ($/MT)
Average 21230.42
18-04-2018 21725
17-04-2018 21725
16-04-2018 21075
13-04-2018 21190
12-04-2018 21000
11-04-2018 21175
10-04-2018 21375
09-04-2018 21100
06-04-2018 21050
05-04-2018 21075
04-04-2018 20860
03-04-2018 21415
Nickel
Date(Fix.) ($/MT)
Average 13785.42
18-04-2018 15105
17-04-2018 15105
16-04-2018 14150
13-04-2018 14005
12-04-2018 13585
11-04-2018 13740
10-04-2018 13700
09-04-2018 13240
06-04-2018 12890
05-04-2018 13285
04-04-2018 13060
03-04-2018 13560
Cobalt
Date(Fix.) ($/MT)
Average 91375.00
18-04-2018 91500
17-04-2018 91500
16-04-2018 91500
13-04-2018 92250
12-04-2018 91500
11-04-2018 91500
10-04-2018 91500
09-04-2018 91500
06-04-2018 91500
05-04-2018 91000
04-04-2018 88000
03-04-2018 93250