Monthly Metal Review

Overview

    A very strong end to the year enabled industrial metals to consolidate their position as the strongest performing commodity sector in 2009. However since mid January, base metals retreated on the back of a wave of bearish economic data. Market participants attributed the rapid pricing fall-off to a slew of negative factors, including weaker macroeconomic data out of the United States, uncertainty over the US banking reforms, the impact of lingering anxiety over China's lending clamp down and more widely, ongoing concerns over the speed of the economic recovery, following Greece severe financial difficulties.
    Indeed in the US, President Barack Obama laid out plans to overhaul financial regulation. Obama is pushing for new rules that would restrict banks from using money gathered from deposits to trade stocks and bonds as well as limit the overall size of banks. Another worrying macroeconomic news in the US, came in the form of new residential home sales, which were down for the second straight month in December, according to the U.S. Commerce Department. New home sales last month were down 7.6% from November and off 8,6% from a year earlier, while full-year sales of 374,000 new homes were down 22.9% from 2008.
    In the currency market, the dollar index which weighs the strength of dollar against the basket of six other currencies rose on concerns that Greece and other countries might have problems repaying their loans. Thus the US dollar hit its strongest level against the euro in nearly six months hovering around 1,40. The dollar also strengthened on fears that China will curb bank lending. The China Banking Regulatory Commission said it hasn't "specifically" told banks to suspend lending in January, but a report said that it had asked several banks to stop issuing loans.
    However, the central bank of China just increased its bank reserve ratio requirement (RRR) by 50bp, and some analysts believe that the impact on liquidity in the domestic market is minimal, as it marks a shift, rather than a tightening.
    In the energy sector, oil fell sharply in spite of Chinese data showing that monthly crude imports surpassed 5 million barrels a day for the first time last month. Chinese oil demand rose by more than 15% year-on-year in December, well above 2008 levels.
    Regarding base metals, the pace of recovery should accelerate in 2010 as fundamentals improve. Besides, forward-looking indicators like global PMIs and December Asian exports continue to point to strong manufacturing growth ahead. A recovery in US, European and Japanese metals demand and strong import demand from China should result in a reversal of rising inventory trends in H1 2010. However, an end to the initial restocking boost in the OECD, plus tighter monetary policy globally, means that the momentum of demand growth is likely to be slowing again by H2 10.

Daily Prices

January 2010

Copper
Date(Fix.) ($/MT)
Average 7386.25
29-01-2010 6854
28-01-2010 7042
27-01-2010 7244
26-01-2010 7306
25-01-2010 7409
22-01-2010 7240
21-01-2010 7347
20-01-2010 7446
19-01-2010 7442
18-01-2010 7507
15-01-2010 7405.5
14-01-2010 7454
13-01-2010 7391
12-01-2010 7425
11-01-2010 7685
08-01-2010 7446
07-01-2010 7594
06-01-2010 7587.5
05-01-2010 7436
04-01-2010 7464
Silver
Date(Fix.) ($/OZ)
Average 17.79
29-01-2010 16.29
28-01-2010 16.62
27-01-2010 16.74
26-01-2010 16.79
25-01-2010 17.16
22-01-2010 17.28
21-01-2010 17.68
20-01-2010 18.48
19-01-2010 18.5
18-01-2010 18.66
15-01-2010 18.52
14-01-2010 18.58
13-01-2010 18.35
12-01-2010 18.41
11-01-2010 18.84
08-01-2010 18.12
07-01-2010 18.09
06-01-2010 17.89
05-01-2010 17.57
04-01-2010 17.17
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
29-01-2010 -
28-01-2010 -
27-01-2010 -
26-01-2010 -
25-01-2010 -
22-01-2010 -
21-01-2010 -
20-01-2010 -
19-01-2010 -
18-01-2010 -
15-01-2010 -
14-01-2010 -
13-01-2010 -
12-01-2010 -
11-01-2010 -
08-01-2010 -
07-01-2010 -
06-01-2010 -
05-01-2010 -
04-01-2010 -
Date(Fix.) ($/OZ)
Average -
29-01-2010 -
28-01-2010 -
27-01-2010 -
26-01-2010 -
25-01-2010 -
22-01-2010 -
21-01-2010 -
20-01-2010 -
19-01-2010 -
18-01-2010 -
15-01-2010 -
14-01-2010 -
13-01-2010 -
12-01-2010 -
11-01-2010 -
08-01-2010 -
07-01-2010 -
06-01-2010 -
05-01-2010 -
04-01-2010 -
Date(Fix.) ($/OZ)
Average 1117.96
29-01-2010 1078.5
28-01-2010 1088
27-01-2010 1094.75
26-01-2010 1093.25
25-01-2010 1095.25
22-01-2010 1084
21-01-2010 1108.25
20-01-2010 1120.25
19-01-2010 1133
18-01-2010 1134.5
15-01-2010 1128
14-01-2010 1138.25
13-01-2010 1127.25
12-01-2010 1151.25
11-01-2010 1153
08-01-2010 1126.75
07-01-2010 1130.25
06-01-2010 1130
05-01-2010 1123.25
04-01-2010 1121.5
Lead
Date(Fix.) ($/MT)
Average 2368.38
29-01-2010 2055
28-01-2010 2089.5
27-01-2010 2140
26-01-2010 2165.5
25-01-2010 2235
22-01-2010 2227
21-01-2010 2273
20-01-2010 2405.5
19-01-2010 2420.5
18-01-2010 2451.5
15-01-2010 2440
14-01-2010 2451
13-01-2010 2435
12-01-2010 2414.5
11-01-2010 2576
08-01-2010 2524
07-01-2010 2591
06-01-2010 2582
05-01-2010 2440
04-01-2010 2451.5
Zinc
Date(Fix.) ($/MT)
Average 2434.45
29-01-2010 2122
28-01-2010 2155.5
27-01-2010 2254.5
26-01-2010 2307.5
25-01-2010 2323.5
22-01-2010 2324
21-01-2010 2449
20-01-2010 2468.5
19-01-2010 2458.5
18-01-2010 2467
15-01-2010 2440.5
14-01-2010 2492.5
13-01-2010 2477
12-01-2010 2487
11-01-2010 2579
08-01-2010 2529
07-01-2010 2634.5
06-01-2010 2618
05-01-2010 2526.5
04-01-2010 2575
Tin
Date(Fix.) ($/MT)
Average 17714.75
29-01-2010 17045
28-01-2010 17650
27-01-2010 17925
26-01-2010 17750
25-01-2010 17750
22-01-2010 17725
21-01-2010 17910
20-01-2010 17950
19-01-2010 17630
18-01-2010 17930
15-01-2010 18100
14-01-2010 18200
13-01-2010 17725
12-01-2010 17730
11-01-2010 17825
08-01-2010 17415
07-01-2010 17680
06-01-2010 17500
05-01-2010 17405
04-01-2010 17450