Monthly Metal Review

Overview (May 2019)

The US- China trade dispute continues to be the single biggest outstanding issue that is affecting the global economy. However, there were some interesting developments in other parts that managed to divert the attention of global markets temporarily. British Prime Ministry Theresa May announced she would step down as leader of conservative party. She was under constant pressure to quit especially after she failed to secure support from her own MPs over her latest Brexit plan. The new plan included concessions aimed at attracting popular vote from all parties. In Europe parliament’s elections, the surprising and historic gain of Greens and Liberal groups over the long existing Grand Alliance was a major discussion point. With their absolute majorities gone, the centre left and the centre right are expected to be under tremendous bargain pressure from the greens and far-right popu-lists. The fragmentation is expected to shape the future European Parliament’s decision making abilities. In India, that went under a month long election process with over 900 million voters, Narendra Modi won another five year term in a very convincing win over his opposition. In another news from further east, Indonesian President Joko Widodo was reelected for another term. The development set off violence in Jakarta where at least six people died after protests. Refusal of Prabowo Subianto, his challenger, to concede defeat is adding further uncertainty to the political situation in a country that is rich in several minerals. Any major political developments in Indonesia has potential to affect key commodities such as copper, tin and coal that are abundant in the region. Increased negative rhetoric on the US-China trade talks started to emerge in late April, when a senior White House offi-cial said the US was ready to walk if it gets no deal with China soon. This sparked a degree of nervousness into what had been a relatively upbeat market since the start of the year. Indeed, confi-dence that a trade deal would be reached underpinned a stronger market in the first four months of the year that saw copper prices rising to $6,600 per tonne in April, from $5,725 at the start of the year, a rise of 15.3 percent. Once the trade talks turned sour with the chance of an agreement being kicked down the road, market sentiment deteriorated sharply. For copper, this has meant prices have fallen back below $5,900 per tonne. But, the impact has been far reaching with equity markets showing weakness with the Dow Jones Industrial Average, the Euro Stoxx 50 and China’s CSI 300, falling 5.4%, 6.2% and 11% respectively. More telling has been the drop in government bond yields that have seen the US 10-year treasury yield fall to 2.2260 percent, from 2.5135 per-cent at the time of the May report and a peak of around 3.2 per-cent in the fourth quarter last year. German 10-year bund yields have fallen to minus 0.1750 percent, from 0.0100 percent a month earlier and Japan’s 10-year bond yield has also turned negative. While safe-haven government bond yields have been falling, more troubled government bond yields, such as Italy’s 10-year yield has climbed to 2.65 percent. The Bank of England decided to keep its key interest rates unchanged at 0.75 percent. While financial markets forecast a single increase in interest rates by 2021, Bank of England Gover-nor, Mark Carney, said in the event of a Brexit-impasse resolution the bank may go for more increases, and if economy continues to perform as the bank expects over the next two years.

Daily Prices

June 2019

Copper
Date(Fix.) ($/MT)
Average 5811.38
18-06-2019 5848.5
17-06-2019 5756
14-06-2019 5805.5
13-06-2019 5797.5
12-06-2019 5828.5
11-06-2019 5905
10-06-2019 5788
07-06-2019 5770
06-06-2019 5805
05-06-2019 5832.5
04-06-2019 5804
03-06-2019 5796
Silver
Date(Fix.) ($/OZ)
Average 14.82
18-06-2019 14.895
17-06-2019 14.78
14-06-2019 15.025
13-06-2019 14.795
12-06-2019 14.79
11-06-2019 14.695
10-06-2019 14.745
07-06-2019 14.91
06-06-2019 14.955
05-06-2019 14.84
04-06-2019 14.72
03-06-2019 14.705
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1333.35
18-06-2019 1344.55
17-06-2019 1333.2
14-06-2019 1352.45
13-06-2019 1335.8
12-06-2019 1336.65
11-06-2019 1322.65
10-06-2019 1328.6
07-06-2019 1334.3
06-06-2019 1336.65
05-06-2019 1337.75
04-06-2019 1323.6
03-06-2019 1313.95
Date(Fix.) ($/OZ)
Average 1333.66
18-06-2019 1342.95
17-06-2019 1337.25
14-06-2019 1351.85
13-06-2019 1335.85
12-06-2019 1334.5
11-06-2019 1323.475
10-06-2019 1328.6
07-06-2019 1337.475
06-06-2019 1336.075
05-06-2019 1336.4
04-06-2019 1323.925
03-06-2019 1315.525
Date(Fix.) ($/OZ)
Average 1333.97
18-06-2019 1341.35
17-06-2019 1341.3
14-06-2019 1351.25
13-06-2019 1335.9
12-06-2019 1332.35
11-06-2019 1324.3
10-06-2019 1328.6
07-06-2019 1340.65
06-06-2019 1335.5
05-06-2019 1335.05
04-06-2019 1324.25
03-06-2019 1317.1
Lead
Date(Fix.) ($/MT)
Average 1882.29
18-06-2019 1886
17-06-2019 1873
14-06-2019 1882
13-06-2019 1903
12-06-2019 1918
11-06-2019 1949
10-06-2019 1888
07-06-2019 1837
06-06-2019 1945
05-06-2019 1881.5
04-06-2019 1834
03-06-2019 1791
Zinc
Date(Fix.) ($/MT)
Average 2613.58
18-06-2019 2589
17-06-2019 2549
14-06-2019 2575
13-06-2019 2604
12-06-2019 2640.5
11-06-2019 2670
10-06-2019 2620.5
07-06-2019 2621
06-06-2019 2637
05-06-2019 2605.5
04-06-2019 2636
03-06-2019 2615.5
Tin
Date(Fix.) ($/MT)
Average 19267.92
18-06-2019 18975
17-06-2019 19125
14-06-2019 19550
13-06-2019 19500
12-06-2019 19325
11-06-2019 19360
10-06-2019 19280
07-06-2019 19630
06-06-2019 19110
05-06-2019 19110
04-06-2019 19250
03-06-2019 19000
Nickel
Date(Fix.) ($/MT)
Average 11762.50
18-06-2019 11705
17-06-2019 11745
14-06-2019 11895
13-06-2019 11920
12-06-2019 11745
11-06-2019 11825
10-06-2019 11600
07-06-2019 11580
06-06-2019 11710
05-06-2019 11765
04-06-2019 11800
03-06-2019 11860
Cobalt
Date(Fix.) ($/MT)
Average 29500.00
18-06-2019 28000
17-06-2019 28000
14-06-2019 28000
13-06-2019 28000
12-06-2019 28000
11-06-2019 28000
10-06-2019 28000
07-06-2019 28000
06-06-2019 32500
05-06-2019 32500
04-06-2019 32500
03-06-2019 32500