Monthly Metal Review

Overview

Over the last month the global credit crunch has caused further turmoil in the financial markets, with the de facto “nationalization” of Fanny Mae and Freddie Mac, the collapse of Lehman Brothers, the merger of Merrill Lynch with Bank of America, the bailout of insurance giant AIG and the transformation of Goldman Sachs and Morgan Stanley into bank holding companies. Furthermore, as an end to such a tough month, the $700 Billion Paulson Plan, meant to bail out troubled assets and supposedly, to restore confidence, was rejected on the 29th September.
U.S financial stocks immediately plunged with the heaviest selling hitting two sub-sectors: large securities houses and smaller regional lenders with large portfolios of troubled mortgages. US private housing starts, on a seasonally adjusted annual basis, fell 6.2% month on month in August, to 895,000, a decline of 33.1% from August 2007. The USGS primary metals leading index in August 2008 fell 2.8% year on year to 148, a decline of 0.7% compared with the revised July figure of 149.1.
As a result, lower spot demand coupled with poor economic data from the U.S, whereby existing home declined by 2.2% and new home sales data fell to 17-year low of 460K, brought most metals prices lower. The declining inventories signaled that demand may revive for lead and zinc. However, the recent panic has overshadowed specific fundamental news over the past month, with gold and silver showing safe-haven gains while most other metals slipped. In China, the central bank has unexpectedly cut base lending rates by 27bp down to 7.20%, the first cut in six years.
The PBOC also reduced reserve requirements for all except China’s five largest banks, which is the first such move since November 1999. This gloomy outlook is likely to curb demand for base metals in the short term and affect prices for a few months as a possible recession is looming.

Daily Prices

September 2008

Copper
Date(Fix.) ($/MT)
Average 6990.86
30-09-2008 6419
29-09-2008 6590
26-09-2008 6926
25-09-2008 6905
24-09-2008 6995
23-09-2008 7090
22-09-2008 7166
19-09-2008 6900
18-09-2008 6932
17-09-2008 6932
16-09-2008 6841
15-09-2008 6879
12-09-2008 7096
11-09-2008 6900
10-09-2008 6861
09-09-2008 6926
08-09-2008 6990
05-09-2008 7075
04-09-2008 7420
03-09-2008 7360
02-09-2008 7225
01-09-2008 7371
Silver
Date(Fix.) ($/OZ)
Average 12.37
30-09-2008 12.96
29-09-2008 13.06
26-09-2008 13.18
25-09-2008 13.34
24-09-2008 13.29
23-09-2008 13.38
22-09-2008 12.99
19-09-2008 12.15
18-09-2008 12.93
17-09-2008 10.77
16-09-2008 10.88
15-09-2008 10.84
12-09-2008 10.8
11-09-2008 10.66
10-09-2008 11.27
09-09-2008 12.04
08-09-2008 12.38
05-09-2008 12.72
04-09-2008 13.02
03-09-2008 12.79
02-09-2008 13.18
01-09-2008 13.58
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
30-09-2008 -
29-09-2008 -
26-09-2008 -
25-09-2008 -
24-09-2008 -
23-09-2008 -
22-09-2008 -
19-09-2008 -
18-09-2008 -
17-09-2008 -
16-09-2008 -
15-09-2008 -
12-09-2008 -
11-09-2008 -
10-09-2008 -
09-09-2008 -
08-09-2008 -
05-09-2008 -
04-09-2008 -
03-09-2008 -
02-09-2008 -
01-09-2008 -
Date(Fix.) ($/OZ)
Average -
30-09-2008 -
29-09-2008 -
26-09-2008 -
25-09-2008 -
24-09-2008 -
23-09-2008 -
22-09-2008 -
19-09-2008 -
18-09-2008 -
17-09-2008 -
16-09-2008 -
15-09-2008 -
12-09-2008 -
11-09-2008 -
10-09-2008 -
09-09-2008 -
08-09-2008 -
05-09-2008 -
04-09-2008 -
03-09-2008 -
02-09-2008 -
01-09-2008 -
Date(Fix.) ($/OZ)
Average 829.95
30-09-2008 884.5
29-09-2008 905
26-09-2008 902.5
25-09-2008 888.5
24-09-2008 896
23-09-2008 899
22-09-2008 889
19-09-2008 869
18-09-2008 863
17-09-2008 813
16-09-2008 779.5
15-09-2008 775
12-09-2008 750.25
11-09-2008 740.75
10-09-2008 775.75
09-09-2008 781.75
08-09-2008 808
05-09-2008 808.5
04-09-2008 805.75
03-09-2008 803.5
02-09-2008 798.5
01-09-2008 822.25
Lead
Date(Fix.) ($/MT)
Average 1869.70
30-09-2008 1801
29-09-2008 1835.5
26-09-2008 1980
25-09-2008 1946
24-09-2008 2001
23-09-2008 1950
22-09-2008 1921
19-09-2008 1832.5
18-09-2008 1805
17-09-2008 1813
16-09-2008 1784
15-09-2008 1803.5
12-09-2008 1885
11-09-2008 1806
10-09-2008 1788
09-09-2008 1805
08-09-2008 1850
05-09-2008 1806
04-09-2008 1975
03-09-2008 1920
02-09-2008 1875
01-09-2008 1951
Zinc
Date(Fix.) ($/MT)
Average 1736.89
30-09-2008 1650
29-09-2008 1682.5
26-09-2008 1780
25-09-2008 1755.5
24-09-2008 1764
23-09-2008 1795
22-09-2008 1793
19-09-2008 1713
18-09-2008 1705
17-09-2008 1719
16-09-2008 1701.5
15-09-2008 1716
12-09-2008 1802.5
11-09-2008 1712.5
10-09-2008 1696
09-09-2008 1705
08-09-2008 1735
05-09-2008 1735.5
04-09-2008 1815.5
03-09-2008 1730.5
02-09-2008 1730.5
01-09-2008 1774
Tin
Date(Fix.) ($/MT)
Average 18363.41
30-09-2008 17175
29-09-2008 17815
26-09-2008 18000
25-09-2008 17455
24-09-2008 17700
23-09-2008 17405
22-09-2008 17555
19-09-2008 17195
18-09-2008 17165
17-09-2008 18400
16-09-2008 18350
15-09-2008 18660
12-09-2008 19150
11-09-2008 19005
10-09-2008 18410
09-09-2008 19025
08-09-2008 18925
05-09-2008 18850
04-09-2008 19700
03-09-2008 19400
02-09-2008 19200
01-09-2008 19455