Monthly Metal Review

Overview

Demand for metals in the main developed countries remains weak and may remain soft in the coming months, but Chinese slowdown is more short-lived and reflects a combination of Olympic-related factors and temporary measures to slow construction activity.
Most of the downside risk to Chinese demand growth is likely to be offset by larger-than-anticipated disruptions to supply. Furthermore, the prices of zinc, nickel and aluminium which had been falling to levels either cutting well into the cost curve (nickel, zinc) or, hovering around the marginal cost of production (aluminium), lead to supply cuts or at least restricting future supply growth to lower-cost projects. There are also huge difficulties in starting new productions for mined metals.
Besides, the relatively rapid strengthening of the Usdollar since the 27th of July has pushed gold, platinum, oil and some base metals lower, as their prices are denominated in Us dollars. The second half of the month saw a slight rebound of gold , oil and base metals while the usdollar was stabilising against the euro around 1.47. Towards the end of the month , oil was trading around usd 115 a barrel.
There was no particular change in interest rates, despite some expectations that the European Central Bank might decide to cut the euro interest rate in front of a softening economy. In China, while growth has modestly weakened owing to a slowdown in exports, domestic demand continues to grow at a robust pace. Indicators such as fixed asset investment, industrial production and real retail sales continued to climb, exceeding expectations, which is positive for base metal demand.
In the USA, there was an unexpected increase in US durable goods orders in July, data released from the Commerce Department showed. Orders for durable goods, a useful indicator of US manufacturing activity, rose by 1.3% MoM in July

Daily Prices

August 2008

Copper
Date(Fix.) ($/MT)
Average 7634.70
29-08-2008 7510
28-08-2008 7648
27-08-2008 7626
26-08-2008 7581
22-08-2008 7861
21-08-2008 7842
20-08-2008 7670
19-08-2008 7477
18-08-2008 7432
15-08-2008 7310
14-08-2008 7640
13-08-2008 7318
12-08-2008 7261
11-08-2008 7460.5
08-08-2008 7550
07-08-2008 7826
06-08-2008 7871
05-08-2008 7809.5
04-08-2008 7905
01-08-2008 8096
Silver
Date(Fix.) ($/OZ)
Average 14.69
29-08-2008 13.76
28-08-2008 13.78
27-08-2008 13.76
26-08-2008 13.05
22-08-2008 13.62
21-08-2008 13.59
20-08-2008 13.27
19-08-2008 13.01
18-08-2008 13.01
15-08-2008 12.82
14-08-2008 14.86
13-08-2008 14.68
12-08-2008 14.45
11-08-2008 15.33
08-08-2008 15.76
07-08-2008 16.59
06-08-2008 16.74
05-08-2008 16.67
04-08-2008 17.37
01-08-2008 17.59
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
29-08-2008 -
28-08-2008 -
27-08-2008 -
26-08-2008 -
22-08-2008 -
21-08-2008 -
20-08-2008 -
19-08-2008 -
18-08-2008 -
15-08-2008 -
14-08-2008 -
13-08-2008 -
12-08-2008 -
11-08-2008 -
08-08-2008 -
07-08-2008 -
06-08-2008 -
05-08-2008 -
04-08-2008 -
01-08-2008 -
Date(Fix.) ($/OZ)
Average -
29-08-2008 -
28-08-2008 -
27-08-2008 -
26-08-2008 -
22-08-2008 -
21-08-2008 -
20-08-2008 -
19-08-2008 -
18-08-2008 -
15-08-2008 -
14-08-2008 -
13-08-2008 -
12-08-2008 -
11-08-2008 -
08-08-2008 -
07-08-2008 -
06-08-2008 -
05-08-2008 -
04-08-2008 -
01-08-2008 -
Date(Fix.) ($/OZ)
Average 838.58
29-08-2008 833
28-08-2008 838.25
27-08-2008 827
26-08-2008 827
22-08-2008 824
21-08-2008 833.5
20-08-2008 815.75
19-08-2008 788.75
18-08-2008 796.25
15-08-2008 786.5
14-08-2008 818
13-08-2008 818.5
12-08-2008 808.75
11-08-2008 852.5
08-08-2008 852.5
07-08-2008 871.5
06-08-2008 879.5
05-08-2008 882
04-08-2008 905.75
01-08-2008 912.5
Lead
Date(Fix.) ($/MT)
Average 1923.58
29-08-2008 1959
28-08-2008 2111
27-08-2008 1916
26-08-2008 1855
22-08-2008 1880
21-08-2008 1895
20-08-2008 1819
19-08-2008 1780
18-08-2008 1724
15-08-2008 1695
14-08-2008 1775
13-08-2008 1707.5
12-08-2008 1893
11-08-2008 1961
08-08-2008 2005
07-08-2008 2119
06-08-2008 2111
05-08-2008 2016
04-08-2008 2090
01-08-2008 2160
Zinc
Date(Fix.) ($/MT)
Average 1723.28
29-08-2008 1720.5
28-08-2008 1800
27-08-2008 1779
26-08-2008 1732
22-08-2008 1805.5
21-08-2008 1805
20-08-2008 1695
19-08-2008 1693
18-08-2008 1631
15-08-2008 1641.5
14-08-2008 1630
13-08-2008 1634
12-08-2008 1658.5
11-08-2008 1670.5
08-08-2008 1690
07-08-2008 1746
06-08-2008 1736
05-08-2008 1750
04-08-2008 1797
01-08-2008 1851
Tin
Date(Fix.) ($/MT)
Average 20026.25
29-08-2008 19955
28-08-2008 20000
27-08-2008 20550
26-08-2008 20700
22-08-2008 21800
21-08-2008 21400
20-08-2008 20000
19-08-2008 19900
18-08-2008 19450
15-08-2008 18675
14-08-2008 19050
13-08-2008 17625
12-08-2008 18150
11-08-2008 18975
08-08-2008 19925
07-08-2008 20500
06-08-2008 20800
05-08-2008 20260
04-08-2008 21110
01-08-2008 21700