Monthly Metal Review

Overview

March relayed February's positive tendency of showings for the stocks and encouraging manufacturing surveys from across the world. Indexes of manufacturing activity and employment occupation indicated industrial recovery being on the track of efficient performing. In general the expansion of the world's economies continues to provide a positive and supportive backdrop for non-ferrous metals though there is a warn that sustained rises in the oil price would menace economic growth and price stability.

Some analysts believe that commodity prices may be overheated and are due for a contraction, however some others contest this view. Most analysts continue to expect high gains in 2011 based on the enormous consuming appetite of China and other developing countries expanding their infrastructure. Supportive to the afore said forecast is Bulgarian KCM that plans to keep its production output targets unchanged due to stable and constant demand, namely lead and zinc.

China has been so far the world's largest consumer of raw materials and the single biggest driver of the commodities bull-run. This month it has adopted a 5-year economic blueprint, aiming for fairer, greener growth. The policies having been declared this week in the Great Hall of the People in Beijing will set the tone for China's consumption of everything from iron ore to copper and cotton. At the core of the plan, which will cover 2011-2015, is a shift towards cleaner, slower growth. But analysts believe this is unlikely to be interpreted as decreasing of demand for raw materials and that the latter will remain robust over the next five years.

The earthquake that hit Japan on March 11th was the catalyst for commodities indiscriminate sell-off amid fears about the fall-out of the unfolding nuclear crisis in Japan. It had created "further risk aversions for a market that is already inundated by unknowns", said D. Brebner, Deutsche Bank in London. Devastating impact of seism and tsunami on the energy and commodities sector, as well as the seaports was huge.

Japan the world's third-largest goods consumer produces little of raw materials and imports ores for conversion into refined metals. At the moment the demand for minerals has been considerably diminished but it is supposed that rebuilding of infrastructure and strengthening of buildings and tsunami defenses will boost country's consumption of industrial metals.

Sentiment evolved from panicked selling to a tentative to return bullishness as investors assessed the effects of the quake and nuclear crisis and found them to be positive or neutral for most commodities.Sustainability of the non-ferrous metals market is always a balancing act. It competes with primary metals for market share, on the one hand, and with geographical and political implications, on the other.

Soaring metals prices gave an impetus to miners to go as far as Greenland, which can become the next extracting frontier. Exploration moves forward to the world regions, normally, considered logistically and politically super risky to justify investments. In fact, operation in risky areas is not necessarily a valuation destroyer and PLC takes in a variety of factors. Optimism of the companies facing giant discoveries can justify the costs. To that extent London Mining, which intends to launch an iron-ore mine in Greenland by 2015 has become one of the highest-capitalized junior miners listed on London's Aim Board. A vivid proof of the postulate that mining companies have to go to where the geology is.

Summarizing the developments of March it could be said that regardless significantly increased risks to the global economic outlook in the wake of turmoil in the North Africa and the Middle East, as well as shocking tragedy in Japan, the macroeconomic backdrop to commodity markets remains supportive.

Daily Prices

March 2011

Copper
Date(Fix.) ($/MT)
Average 9530.65
31-03-2011 9399.5
30-03-2011 9519.5
29-03-2011 9450
28-03-2011 9545
25-03-2011 9715
24-03-2011 9695.5
23-03-2011 9704
22-03-2011 9450
21-03-2011 9519
18-03-2011 9525
17-03-2011 9440
16-03-2011 9354.5
15-03-2011 8980
14-03-2011 9205.5
11-03-2011 9048
10-03-2011 9195.5
09-03-2011 9610
08-03-2011 9420
07-03-2011 9840.5
04-03-2011 9970.5
03-03-2011 9889.5
02-03-2011 9820.5
01-03-2011 9908
Silver
Date(Fix.) ($/OZ)
Average 35.81
31-03-2011 37.87
30-03-2011 37.53
29-03-2011 36.62
28-03-2011 36.62
25-03-2011 37.68
24-03-2011 37.78
23-03-2011 36.58
22-03-2011 35.95
21-03-2011 36.16
18-03-2011 35.15
17-03-2011 34.47
16-03-2011 34.73
15-03-2011 33.88
14-03-2011 36.18
11-03-2011 34.1
10-03-2011 35.19
09-03-2011 36.17
08-03-2011 36.37
07-03-2011 36.6
04-03-2011 34.43
03-03-2011 34.53
02-03-2011 34.75
01-03-2011 34.37
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
31-03-2011 -
30-03-2011 -
29-03-2011 -
28-03-2011 -
25-03-2011 -
24-03-2011 -
23-03-2011 -
22-03-2011 -
21-03-2011 -
18-03-2011 -
17-03-2011 -
16-03-2011 -
15-03-2011 -
14-03-2011 -
11-03-2011 -
10-03-2011 -
09-03-2011 -
08-03-2011 -
07-03-2011 -
04-03-2011 -
03-03-2011 -
02-03-2011 -
01-03-2011 -
Date(Fix.) ($/OZ)
Average -
31-03-2011 -
30-03-2011 -
29-03-2011 -
28-03-2011 -
25-03-2011 -
24-03-2011 -
23-03-2011 -
22-03-2011 -
21-03-2011 -
18-03-2011 -
17-03-2011 -
16-03-2011 -
15-03-2011 -
14-03-2011 -
11-03-2011 -
10-03-2011 -
09-03-2011 -
08-03-2011 -
07-03-2011 -
04-03-2011 -
03-03-2011 -
02-03-2011 -
01-03-2011 -
Date(Fix.) ($/OZ)
Average 1424.01
31-03-2011 1439
30-03-2011 1425.5
29-03-2011 1417.5
28-03-2011 1417
25-03-2011 1436
24-03-2011 1447
23-03-2011 1439.5
22-03-2011 1426
21-03-2011 1432
18-03-2011 1420
17-03-2011 1403.75
16-03-2011 1402
15-03-2011 1400.5
14-03-2011 1422.25
11-03-2011 1411.5
10-03-2011 1413.25
09-03-2011 1431
08-03-2011 1426.25
07-03-2011 1437.5
04-03-2011 1427
03-03-2011 1421.5
02-03-2011 1435.5
01-03-2011 1420.75
Lead
Date(Fix.) ($/MT)
Average 2624.20
31-03-2011 2720
30-03-2011 2700
29-03-2011 2670
28-03-2011 2679
25-03-2011 2705
24-03-2011 2730
23-03-2011 2730
22-03-2011 2663
21-03-2011 2712.5
18-03-2011 2722
17-03-2011 2690
16-03-2011 2593
15-03-2011 2490
14-03-2011 2506.5
11-03-2011 2428.5
10-03-2011 2459.5
09-03-2011 2590
08-03-2011 2559
07-03-2011 2620
04-03-2011 2672
03-03-2011 2611.5
02-03-2011 2532
01-03-2011 2573
Zinc
Date(Fix.) ($/MT)
Average 2349.24
31-03-2011 2318.5
30-03-2011 2337.5
29-03-2011 2317
28-03-2011 2334.5
25-03-2011 2367
24-03-2011 2394.5
23-03-2011 2375
22-03-2011 2298
21-03-2011 2300
18-03-2011 2308
17-03-2011 2313.5
16-03-2011 2301
15-03-2011 2235
14-03-2011 2295
11-03-2011 2260
10-03-2011 2276
09-03-2011 2343
08-03-2011 2350
07-03-2011 2411
04-03-2011 2487
03-03-2011 2472.5
02-03-2011 2447
01-03-2011 2491.5
Tin
Date(Fix.) ($/MT)
Average 30739.57
31-03-2011 31640
30-03-2011 31425
29-03-2011 31400
28-03-2011 31750
25-03-2011 31825
24-03-2011 31625
23-03-2011 31100
22-03-2011 30000
21-03-2011 29920
18-03-2011 30100
17-03-2011 29300
16-03-2011 29000
15-03-2011 28095
14-03-2011 29795
11-03-2011 29350
10-03-2011 29900
09-03-2011 30810
08-03-2011 30425
07-03-2011 31745
04-03-2011 31905
03-03-2011 31625
02-03-2011 31925
01-03-2011 32350