Monthly Metal Review

Overview

    Early this month the LME tested its disaster center at Chelmsford, Essex. Things went smoothly despite some teething issues on a quiet day of trading as the US was on its Labor Day holiday. Most felt that the venue was fairly adequate though there were some concerns on whether there were sufficient phone lines and would there be struggles on a busier day. They will probably do a fuller days trade test in the near future but for now as one trader said, “It does exactly what is says on the tin.”
    The same day, September 7th, base metal prices edged higher amid thin volumes as the LME had purposely chosen a day where large trading volumes were not expected to try out its disaster and recovery site. Despite some poor economic indicators the market continues to be rather bullish. Most base metals finding support in fund-driven performance while Lead was finding its strength in the Chinese crack down on lead producers. Authorities having already shut down and estimated lead smelting capacity of 400,000 tpy, following further investigation could potentially rise to 900,000 tpy, loss of smelting capacity.
     Nevertheless China announced it would be giving preferential loans to producers in an attempt to offset the cost of raw material import theses including lead, zinc, and copper concentrates. This is seen as a symbolic statement intended to show support for producers dependant on overseas raw materials. However domestic smelters feel it would have little impact as the interest rates on loans appear as small differences in the face of more important factors as the volatility of prices. China has been engineering a rapid economic recovery to maintain production and employment by freeing up bank lending and offering inexpensive loans to industrial producers.
   Chinas impressive economic boom has not come without its consequences as its “cancer villages” bear witness. Rivers viscous with heavy metal pollution leach through poisoning town wells and crops. An estimated 460,000 people died prematurely of cancer every year according to a 2007 World Bank study, 85 percent of these cases are stomach, liver, kidney, and colon cancer that can stem from heavy metal ingestion. Chinas top environmental officials have now called for a more effective way to tackle the heavy metal poisoning following a series of lead poisoning across the country.
    It may seem futuristic but it could be just around the corner. Mining hydro thermal vents for not only a renewable form of energy but also drinking water and recovering the gold, silver, copper, iron, zinc, cadmium, manganese, and sulfur, as well as halides, sulfates, chromates, molybdates, and tugstates that are all abundant in the high temperature high pressure fluids of the geological ancient vents.
    As the economy looks forward some feel it is still too soon to affirm a sustainable recovery is just around the corner. Viewing only a weak recovery in an environment of limited inflation, in emerging markets both growth and inflation could be stronger. The quest for high yield will dominate but large-scale risk-taking will continue to be limited, seems to be the forecasted them for next year.
  Towards the end of this month industrial metals ended on a lower trend as the dollar rebounded though miners gained an upward momentum as optimism over the global economy helped drive the sector higher.

Daily Prices

September 2009

Copper
Date(Fix.) ($/MT)
Average 6196.43
30-09-2009 6136
29-09-2009 5934.5
28-09-2009 5896
25-09-2009 5966
24-09-2009 6089.5
23-09-2009 6111
22-09-2009 6295.5
21-09-2009 6089
18-09-2009 6231
17-09-2009 6302
16-09-2009 6315.5
15-09-2009 6156
14-09-2009 6145.5
11-09-2009 6290
10-09-2009 6305
09-09-2009 6415.5
08-09-2009 6465.5
07-09-2009 6297.5
04-09-2009 6280
03-09-2009 6280
02-09-2009 6080
01-09-2009 6240.5
Silver
Date(Fix.) ($/OZ)
Average 16.39
30-09-2009 16.45
29-09-2009 16.07
28-09-2009 15.91
25-09-2009 16.2
24-09-2009 16.76
23-09-2009 17.1
22-09-2009 17.24
21-09-2009 16.68
18-09-2009 17.11
17-09-2009 17.38
16-09-2009 17.29
15-09-2009 16.52
14-09-2009 16.35
11-09-2009 16.89
10-09-2009 16.09
09-09-2009 16.24
08-09-2009 16.75
07-09-2009 16.21
04-09-2009 15.95
03-09-2009 15.73
02-09-2009 14.91
01-09-2009 14.74
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
30-09-2009 -
29-09-2009 -
28-09-2009 -
25-09-2009 -
24-09-2009 -
23-09-2009 -
22-09-2009 -
21-09-2009 -
18-09-2009 -
17-09-2009 -
16-09-2009 -
15-09-2009 -
14-09-2009 -
11-09-2009 -
10-09-2009 -
09-09-2009 -
08-09-2009 -
07-09-2009 -
04-09-2009 -
03-09-2009 -
02-09-2009 -
01-09-2009 -
Date(Fix.) ($/OZ)
Average -
30-09-2009 -
29-09-2009 -
28-09-2009 -
25-09-2009 -
24-09-2009 -
23-09-2009 -
22-09-2009 -
21-09-2009 -
18-09-2009 -
17-09-2009 -
16-09-2009 -
15-09-2009 -
14-09-2009 -
11-09-2009 -
10-09-2009 -
09-09-2009 -
08-09-2009 -
07-09-2009 -
04-09-2009 -
03-09-2009 -
02-09-2009 -
01-09-2009 -
Date(Fix.) ($/OZ)
Average 996.59
30-09-2009 995.75
29-09-2009 989.5
28-09-2009 991.75
25-09-2009 991.5
24-09-2009 1009.75
23-09-2009 1010.25
22-09-2009 1014
21-09-2009 997
18-09-2009 1012
17-09-2009 1018.5
16-09-2009 1015.75
15-09-2009 996
14-09-2009 999.25
11-09-2009 1008.25
10-09-2009 990.75
09-09-2009 999.5
08-09-2009 1000.75
07-09-2009 993
04-09-2009 989
03-09-2009 983
02-09-2009 964.75
01-09-2009 955
Lead
Date(Fix.) ($/MT)
Average 2204.55
30-09-2009 2276
29-09-2009 2184
28-09-2009 2150
25-09-2009 2175
24-09-2009 2200
23-09-2009 2213
22-09-2009 2234
21-09-2009 2135.5
18-09-2009 2171
17-09-2009 2241
16-09-2009 2220.5
15-09-2009 2113
14-09-2009 2045.5
11-09-2009 2109.5
10-09-2009 2181
09-09-2009 2440
08-09-2009 2447.5
07-09-2009 2352.5
04-09-2009 2255
03-09-2009 2224
02-09-2009 2060
01-09-2009 2072
Zinc
Date(Fix.) ($/MT)
Average 1884.02
30-09-2009 1913.5
29-09-2009 1866.5
28-09-2009 1838
25-09-2009 1859.5
24-09-2009 1889.5
23-09-2009 1892
22-09-2009 1925
21-09-2009 1856
18-09-2009 1906
17-09-2009 1928
16-09-2009 1872
15-09-2009 1826.5
14-09-2009 1825.5
11-09-2009 1915
10-09-2009 1895
09-09-2009 1960
08-09-2009 1967
07-09-2009 1909
04-09-2009 1908
03-09-2009 1882
02-09-2009 1794.5
01-09-2009 1820
Tin
Date(Fix.) ($/MT)
Average 14869.09
30-09-2009 15105
29-09-2009 15125
28-09-2009 14900
25-09-2009 14925
24-09-2009 15150
23-09-2009 15200
22-09-2009 15445
21-09-2009 14800
18-09-2009 15100
17-09-2009 15000
16-09-2009 14810
15-09-2009 14700
14-09-2009 14650
11-09-2009 14820
10-09-2009 14900
09-09-2009 15275
08-09-2009 15100
07-09-2009 14700
04-09-2009 14605
03-09-2009 14610
02-09-2009 14050
01-09-2009 14150