Monthly Metal Review

Overview

     This month’s big event was the London Metal Exchange week. With an atmosphere of every who’s who in the industry would at least make an appearance that week in London. Indeed the LME did report record braking attendance to all of its functions this year.   
    A survey done by Credit Suisse reveals investors optimistic view of base metals. According to the majority of investors metals have begun what will be a rather strong recovery with a few investors saying it would be explosive. Mitsui Bussan Commodities also forecasts a strong metals performance for 2010 with an increase in metal appetite following restocking. The LME seminar projected that supply constraints will drive lead, zinc, nickel and tin prices for the second half of 2009. Calyon Credit Agricole also sees all base metals are poised to rally in the fourth quarter. According to investment guru Jim Rogers the interest in commodities will soar as supply constraints mount and currencies continue to weaken. All of these opinions contributing to painting a rather bright picture for base metals in the future.
    As commodity prices rise companies reconsider the hazards of doing business in Africa. Many have fallen and several continue to fall victim to the law of the jungle, however some of the best assets lay beneath that inhospitable jungle. As antagonism between the governments of some of Africa’s least developed countries and international mining companies resurges questions of the future of industrial metal supply are being raised. Some of the richest mineral deposits are cloaked behind the most unpredictable governments. There is a sentiment that secrecy in mining contracts fuels the suspicions and distrust on both sides but there are also many other underlining factors. One of the most problematic for many investors is the seemingly capricious and unpredictable application of the law by equally erratic governments. Nevertheless and despite the risks there has been an increase in investment in the frontiers of African mining.
   From the green of the jungle to the green patina of copper roofs large investments are being made. You may have thought that copper roofs were a charming vestige of an era gone by but Dow Chemical Co sees a huge market. As their solar copper shingles that can be integrated even into standard asphalt shingles will be introduced next year. The shingles that convert sunlight into electricity would save consumers large sums on their energy bills and hopefully reduce their carbon footprint. These nifty little copper shingles could generate $5 billion in revenue for the company by 2015.
   The weak dollar that has been boosting commodities has also raised worries not only with in corporate America but more importantly with international opinion. Despite the prevailing decline of the dollar it is down but not out, partially due to the fact that there is no easy substitute. But with much international support and now new economic growth it may be on the rise again. The United States economy grew for the first time in more than a year as the third quarter numbers came in at 3.5 percent growth in the GDP on an annual rate. As the government stimulus package helped lift consumer spending and fueled an unexpectedly strong advance. The US Treasury Secretary warned that even though the return to economic growth showed that some stability had been regained the recovery is still fragile and would need to be nurtured.
 

Daily Prices

October 2009

Copper
Date(Fix.) ($/MT)
Average 6287.98
30-10-2009 6575
29-10-2009 6424.5
28-10-2009 6475
27-10-2009 6563
26-10-2009 6675.5
23-10-2009 6640
22-10-2009 6565.5
21-10-2009 6346
20-10-2009 6444
19-10-2009 6260
16-10-2009 6160.5
15-10-2009 6077
14-10-2009 6192
13-10-2009 6282
12-10-2009 6236
09-10-2009 6265.5
08-10-2009 6241.5
07-10-2009 6060.5
06-10-2009 6042
05-10-2009 5856
02-10-2009 5872
01-10-2009 6082
Silver
Date(Fix.) ($/OZ)
Average 17.24
30-10-2009 16.57
29-10-2009 16.33
28-10-2009 16.33
27-10-2009 17.06
26-10-2009 17.61
23-10-2009 17.65
22-10-2009 17.55
21-10-2009 17.39
20-10-2009 17.755
19-10-2009 17.52
16-10-2009 17.31
15-10-2009 17.54
14-10-2009 17.93
13-10-2009 17.99
12-10-2009 17.89
09-10-2009 17.63
08-10-2009 17.8
07-10-2009 17.4
06-10-2009 16.95
05-10-2009 16.23
02-10-2009 16.21
01-10-2009 16.55
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
30-10-2009 -
29-10-2009 -
28-10-2009 -
27-10-2009 -
26-10-2009 -
23-10-2009 -
22-10-2009 -
21-10-2009 -
20-10-2009 -
19-10-2009 -
16-10-2009 -
15-10-2009 -
14-10-2009 -
13-10-2009 -
12-10-2009 -
09-10-2009 -
08-10-2009 -
07-10-2009 -
06-10-2009 -
05-10-2009 -
02-10-2009 -
01-10-2009 -
Date(Fix.) ($/OZ)
Average -
30-10-2009 -
29-10-2009 -
28-10-2009 -
27-10-2009 -
26-10-2009 -
23-10-2009 -
22-10-2009 -
21-10-2009 -
20-10-2009 -
19-10-2009 -
16-10-2009 -
15-10-2009 -
14-10-2009 -
13-10-2009 -
12-10-2009 -
09-10-2009 -
08-10-2009 -
07-10-2009 -
06-10-2009 -
05-10-2009 -
02-10-2009 -
01-10-2009 -
Date(Fix.) ($/OZ)
Average 1043.16
30-10-2009 1040
29-10-2009 1040.5
28-10-2009 1031.75
27-10-2009 1036.5
26-10-2009 1054
23-10-2009 1061.75
22-10-2009 1053
21-10-2009 1053.75
20-10-2009 1061.75
19-10-2009 1050.5
16-10-2009 1047.5
15-10-2009 1053.5
14-10-2009 1059.5
13-10-2009 1057.5
12-10-2009 1058.75
09-10-2009 1051.5
08-10-2009 1045
07-10-2009 1040.25
06-10-2009 1038.75
05-10-2009 1005.5
02-10-2009 1003.5
01-10-2009 1004.75
Lead
Date(Fix.) ($/MT)
Average 2240.77
30-10-2009 2322
29-10-2009 2297
28-10-2009 2243
27-10-2009 2305
26-10-2009 2376
23-10-2009 2405.5
22-10-2009 2410.5
21-10-2009 2246
20-10-2009 2315
19-10-2009 2191
16-10-2009 2180
15-10-2009 2140
14-10-2009 2169
13-10-2009 2301
12-10-2009 2263
09-10-2009 2250
08-10-2009 2221
07-10-2009 2142
06-10-2009 2128
05-10-2009 2115
02-10-2009 2085
01-10-2009 2192
Zinc
Date(Fix.) ($/MT)
Average 2071.59
30-10-2009 2195
29-10-2009 2207
28-10-2009 2241
27-10-2009 2320
26-10-2009 2331
23-10-2009 2269
22-10-2009 2240
21-10-2009 2114.5
20-10-2009 2100
19-10-2009 2034.5
16-10-2009 2009
15-10-2009 1965
14-10-2009 1988
13-10-2009 2063.5
12-10-2009 2061
09-10-2009 2044.5
08-10-2009 1978
07-10-2009 1902.5
06-10-2009 1889
05-10-2009 1855
02-10-2009 1852
01-10-2009 1915.5
Tin
Date(Fix.) ($/MT)
Average 15008.86
30-10-2009 14755
29-10-2009 15400
28-10-2009 15095
27-10-2009 15510
26-10-2009 15500
23-10-2009 15350
22-10-2009 14820
21-10-2009 14750
20-10-2009 15050
19-10-2009 14760
16-10-2009 14925
15-10-2009 14600
14-10-2009 14655
13-10-2009 15050
12-10-2009 15175
09-10-2009 15100
08-10-2009 15305
07-10-2009 15050
06-10-2009 14800
05-10-2009 14600
02-10-2009 14700
01-10-2009 15245