Monthly Metal Review

Overview

      In July, the base metals have recovered from the depressed levels of early June with prices trading at 12-14 weeks high and likely to continue their upward rally on economic optimism. Similarly, oil prices rose as better-than-expected earnings from ExxonMobil Corp., Southwest Airlines Co. and others bolstered hope for an improving economy. 
    The euro climbed to $1.31 for the first time in almost three months as European confidence in the economic outlook rose to the highest level in more than two years this month and German unemployment decreased. In spite of Portugal’s two-notch downgrade by Moody’s, the euro was also supported this week as stress tests released July 23 found only seven European banks needed to raise additional capital.
    The Federal Reserve underscored yesterday in the Beige Book business survey its view that the U.S. economic recovery, while still moving forward, is progressing at a slower pace than earlier in the year. U.S. gross domestic product grew at a 2.5% annualized rate in the second quarter after expanding at a 2.7% pace in the first three months of the year, according to the median forecast of 81 economists in a Bloomberg News survey.
    The month headline is the mining and energy taxing system issues which have spread globally. Australia eventually ended a damaging dispute with global miners by dumping its planned "super profits" tax for a lower resources rent tax backed by big miners, clearing a major hurdle to calling an early election. The resource rent tax will be at a rate of 30%, down from the previous "super profits" tax rate of 40% and it will only apply to coal and iron ore mining and exploration companies earning more than A$50 million in annual profit. Although miners will pay more tax, the total will be less than under the proposed "super profits" tax and the government still gets extra revenue to fulfil pre-election promises. Global miners BHP Billiton, Rio Tinto and Xstrata welcomed the new tax, but not all miners were happy, saying the deal still threatened Australia's resources sector and overseas investment. In fact, the watered down mine tax upset some smaller iron ore miners, the backbone of mineral exploration, who had wanted rebates on millions of dollars spent annually exploring.
    In the meantime, Chile's Congress rejected a government proposal to revamp mining royalties to help pay for reconstruction after a massive quake, in a major political blow for President Sebastian Pinera. The proposed change in mining royalties aimed to raise up to $1 billion out of a wider $8.4 billion package to fund rebuilding after the February 27 disaster which killed over 500 people and ravaged industries in south-central Chile.
    Paradoxically, China, which helped its heavy industry survive the financial crisis by lowering barriers to exports, is now hitting the same exports with a tax to discourage rampant production that uses too much energy. The government has repeatedly vowed to crack down on overcapacity, threatening to withdraw loans, outlawing expansion and advocating a wave of consolidation that will leave only a few big players in each industry. As a result China set a target of cutting the energy intensity of its economy by 20% in the current five-year plan, which ends this year, but that now looks a hard target to meet. After falling for four years, energy use shot up in the first half of this year because of expanded production in high-energy industries. The government said it would cut and scrap some rebates on exports of steel and most base metals and semi-finished products made from those metals from July 15. T his new export tax policy is part of efforts to limit capacity of high-energy and high-emission industries for which coal and coke are needed. China now aims at exporting high value-add finished products like automobiles and ships instead.
     China's PMI fell by 0.9 points to a 17-month low of 51.2 points in July, marking the third straight month of decrease. An official from China's Federation of Logistics & Purchasing attributed this to seasonal factors and macro-control measures like property sector tightening and export tax rebate.

Daily Prices

July 2010

Copper
Date(Fix.) ($/MT)
Average 6735.25
30-07-2010 7195
29-07-2010 7206
28-07-2010 7120
27-07-2010 7091.5
26-07-2010 6995.5
23-07-2010 6995
22-07-2010 6920.5
21-07-2010 6771
20-07-2010 6526
19-07-2010 6514
16-07-2010 6650
15-07-2010 6656
14-07-2010 6694.5
13-07-2010 6596
12-07-2010 6630.5
09-07-2010 6680.5
08-07-2010 6641
07-07-2010 6545
06-07-2010 6523
05-07-2010 6440
02-07-2010 6430.5
01-07-2010 6354
Silver
Date(Fix.) ($/OZ)
Average 17.96
30-07-2010 17.66
29-07-2010 17.6
28-07-2010 17.63
27-07-2010 18.16
26-07-2010 18.01
23-07-2010 18.17
22-07-2010 17.82
21-07-2010 17.88
20-07-2010 17.55
19-07-2010 17.78
16-07-2010 18.25
15-07-2010 18.42
14-07-2010 18.29
13-07-2010 18
12-07-2010 18.06
09-07-2010 17.87
08-07-2010 18
07-07-2010 17.65
06-07-2010 17.85
05-07-2010 17.85
02-07-2010 17.98
01-07-2010 18.65
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
30-07-2010 -
29-07-2010 -
28-07-2010 -
27-07-2010 -
26-07-2010 -
23-07-2010 -
22-07-2010 -
21-07-2010 -
20-07-2010 -
19-07-2010 -
16-07-2010 -
15-07-2010 -
14-07-2010 -
13-07-2010 -
12-07-2010 -
09-07-2010 -
08-07-2010 -
07-07-2010 -
06-07-2010 -
05-07-2010 -
02-07-2010 -
01-07-2010 -
Date(Fix.) ($/OZ)
Average -
30-07-2010 -
29-07-2010 -
28-07-2010 -
27-07-2010 -
26-07-2010 -
23-07-2010 -
22-07-2010 -
21-07-2010 -
20-07-2010 -
19-07-2010 -
16-07-2010 -
15-07-2010 -
14-07-2010 -
13-07-2010 -
12-07-2010 -
09-07-2010 -
08-07-2010 -
07-07-2010 -
06-07-2010 -
05-07-2010 -
02-07-2010 -
01-07-2010 -
Date(Fix.) ($/OZ)
Average 1192.97
30-07-2010 1169
29-07-2010 1162.5
28-07-2010 1157
27-07-2010 1168
26-07-2010 1183.5
23-07-2010 1190.5
22-07-2010 1199.5
21-07-2010 1191.5
20-07-2010 1183
19-07-2010 1181
16-07-2010 1189.25
15-07-2010 1208
14-07-2010 1207
13-07-2010 1216
12-07-2010 1205.5
09-07-2010 1208.75
08-07-2010 1193.5
07-07-2010 1193.25
06-07-2010 1195
05-07-2010 1208
02-07-2010 1201.5
01-07-2010 1234
Lead
Date(Fix.) ($/MT)
Average 1836.98
30-07-2010 2065
29-07-2010 2003
28-07-2010 1968
27-07-2010 1975
26-07-2010 1960
23-07-2010 1930.5
22-07-2010 1894
21-07-2010 1844
20-07-2010 1762
19-07-2010 1751.5
16-07-2010 1789
15-07-2010 1801
14-07-2010 1814
13-07-2010 1766.5
12-07-2010 1807
09-07-2010 1808
08-07-2010 1804
07-07-2010 1756
06-07-2010 1755
05-07-2010 1731.5
02-07-2010 1736
01-07-2010 1692.5
Zinc
Date(Fix.) ($/MT)
Average 1843.89
30-07-2010 1973.5
29-07-2010 1971
28-07-2010 1923.5
27-07-2010 1907
26-07-2010 1883.5
23-07-2010 1891
22-07-2010 1902.5
21-07-2010 1869
20-07-2010 1810
19-07-2010 1784
16-07-2010 1800
15-07-2010 1823
14-07-2010 1826
13-07-2010 1817.5
12-07-2010 1828.5
09-07-2010 1840
08-07-2010 1830
07-07-2010 1810
06-07-2010 1814
05-07-2010 1765
02-07-2010 1770
01-07-2010 1726.5
Tin
Date(Fix.) ($/MT)
Average 18191.36
30-07-2010 19550
29-07-2010 19550
28-07-2010 19410
27-07-2010 19500
26-07-2010 19235
23-07-2010 18635
22-07-2010 18395
21-07-2010 18280
20-07-2010 17925
19-07-2010 17855
16-07-2010 17855
15-07-2010 18110
14-07-2010 18060
13-07-2010 17600
12-07-2010 17740
09-07-2010 17700
08-07-2010 17670
07-07-2010 17650
06-07-2010 17440
05-07-2010 17250
02-07-2010 17300
01-07-2010 17500