Monthly Metal Review

Overview

June as the mid-point of the year was highlighted by a number of conferences and meetings that gave scrupulous analysis of the current situation of the non-ferrous and ferrous markets and the perspectives of their further development.

France was honored to chair the Group of Twenty in 2011. Nicolas Sarkozy, the French president, has used France’s spell at the head of the G20 to call for a con-certed effort to cope with raw materials inflation.

The most important driver of commodity inflation is supposed to be the growth in global demand. Dealing with this problem is easier in some markets than in oth-ers. Due to the finite nature of the mineral resources and the high cost of extraction, markets for metals and hy-drocarbons tend to be far from perfect. This makes it harder to keep prices closer to costs, since the cost of higher prices is borne by consumers the world over, whereas private companies reap the benefits.

In light of the above said Nicolas Sarkozy set out a three-directional approach including boosting of produc-tion; increasing transparency in commodities derivatives markets by standardizing contracts and forcing more deals on to exchanges; and setting a minimum amount of collateral that parties must post when they enter into a derivatives transaction.

Forcing more derivatives trading onto exchanges will make it easier to identify and mitigate systemic risk. Im-posing margin requirements will insure traders against adverse market movements. It may also reduce purely speculative positions. It is encouraging that on both sides of the Atlantic, moves are being made in this direction.

On the backdrop of global initiative Lakshmi Mittal’s keynote speech on India and analysis of the future devel-opments in China were hot topics at Steel Success Strate-gies conference in New York. Attention was focused on India and its voracious appetite for metals. Indian de-mand for steel is expected to surge by 10-15% in 2011. A growing, youthful population that will require additional housing and increased infrastructure supports this trend. It goes without saying that demand for non-ferrous met-als will go abreast.

This growth is attracting both domestic and foreign investors, who are also eager to tap into the country’s lucrative raw materials deposits.

Annual Investment Forum in Moscow organized by the bank Renaissance Capital presented vision of the political and business elite of Russia on the ways of im-provement of investment climate in the country in the nearest perspective. Russia aspires to acquire a stable position among the world leading economies and steadily moves towards creation of the investment friendly atmosphere being fixed on the legislative level in conformi-ty with international norms.

Potential of the CIS countries markets is considerable and has been gradually interweaving in the tissue of the world economy. One of the recent important signs on this way has been manifested by the creation of the unified economic space among Russia, Belarus and Kazakhstan.

Weaker-than-expected economic data from the US, combined with a return to the Eurozone sovereign debt crisis in recent weeks have caused investors to question the sustainability of the rally in risk assets. But as Greek government voted 155-138 to pass austerity measures, assuring the country to receive international aid and fol-lowed the approval of austerity plan, market concerns eased and risk appetite also returned.

There is already talk that equity sentiment has turned bearish. The ratio of buying of “put” options versus “call” equity options in the US has moved sharply up, as investors seek more protection.

Daily Prices

June 2011

Copper
Date(Fix.) ($/MT)
Average 9045.43
30-06-2011 9301
29-06-2011 9176
28-06-2011 8995.5
27-06-2011 9000.5
24-06-2011 9045
23-06-2011 8978.5
22-06-2011 9007
21-06-2011 9060
20-06-2011 8935
17-06-2011 9101.5
16-06-2011 9011.5
15-06-2011 9147
14-06-2011 9010
13-06-2011 8895
10-06-2011 9000.5
09-06-2011 8950.5
08-06-2011 8970.5
07-06-2011 9092
06-06-2011 9098
03-06-2011 9016
02-06-2011 9037.5
01-06-2011 9171
Silver
Date(Fix.) ($/OZ)
Average 35.80
30-06-2011 35.02
29-06-2011 34.39
28-06-2011 33.96
27-06-2011 34.01
24-06-2011 34.73
23-06-2011 36.01
22-06-2011 35.91
21-06-2011 36.22
20-06-2011 35.58
17-06-2011 35.39
16-06-2011 35.55
15-06-2011 35.26
14-06-2011 34.68
13-06-2011 35.51
10-06-2011 37.38
09-06-2011 37.03
08-06-2011 36.22
07-06-2011 37.41
06-06-2011 36.87
03-06-2011 35.19
02-06-2011 37.22
01-06-2011 37.95
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average -
30-06-2011 -
29-06-2011 -
28-06-2011 -
27-06-2011 -
24-06-2011 -
23-06-2011 -
22-06-2011 -
21-06-2011 -
20-06-2011 -
17-06-2011 -
16-06-2011 -
15-06-2011 -
14-06-2011 -
13-06-2011 -
10-06-2011 -
09-06-2011 -
08-06-2011 -
07-06-2011 -
06-06-2011 -
03-06-2011 -
02-06-2011 -
01-06-2011 -
Date(Fix.) ($/OZ)
Average -
30-06-2011 -
29-06-2011 -
28-06-2011 -
27-06-2011 -
24-06-2011 -
23-06-2011 -
22-06-2011 -
21-06-2011 -
20-06-2011 -
17-06-2011 -
16-06-2011 -
15-06-2011 -
14-06-2011 -
13-06-2011 -
10-06-2011 -
09-06-2011 -
08-06-2011 -
07-06-2011 -
06-06-2011 -
03-06-2011 -
02-06-2011 -
01-06-2011 -
Date(Fix.) ($/OZ)
Average 1528.66
30-06-2011 1505.5
29-06-2011 1504.25
28-06-2011 1499
27-06-2011 1498
24-06-2011 1514.75
23-06-2011 1523
22-06-2011 1552.5
21-06-2011 1544.75
20-06-2011 1544
17-06-2011 1537.5
16-06-2011 1523.25
15-06-2011 1529.75
14-06-2011 1516
13-06-2011 1526.25
10-06-2011 1529.25
09-06-2011 1537.75
08-06-2011 1537.75
07-06-2011 1545
06-06-2011 1549
03-06-2011 1540
02-06-2011 1539.5
01-06-2011 1533.75
Lead
Date(Fix.) ($/MT)
Average 2512.20
30-06-2011 2622.5
29-06-2011 2585.5
28-06-2011 2553
27-06-2011 2545.5
24-06-2011 2555
23-06-2011 2517.5
22-06-2011 2455.5
21-06-2011 2442
20-06-2011 2380
17-06-2011 2461
16-06-2011 2472
15-06-2011 2542
14-06-2011 2550.5
13-06-2011 2512.5
10-06-2011 2577.5
09-06-2011 2571
08-06-2011 2520.5
07-06-2011 2510
06-06-2011 2471
03-06-2011 2426
02-06-2011 2485
01-06-2011 2513
Zinc
Date(Fix.) ($/MT)
Average 2230.48
30-06-2011 2315
29-06-2011 2260.5
28-06-2011 2235
27-06-2011 2229
24-06-2011 2225
23-06-2011 2220
22-06-2011 2196
21-06-2011 2187.5
20-06-2011 2149
17-06-2011 2200
16-06-2011 2194
15-06-2011 2254
14-06-2011 2248
13-06-2011 2227
10-06-2011 2252.5
09-06-2011 2259
08-06-2011 2241
07-06-2011 2251.5
06-06-2011 2252.5
03-06-2011 2222
02-06-2011 2226
01-06-2011 2226
Tin
Date(Fix.) ($/MT)
Average 25576.36
30-06-2011 25900
29-06-2011 25310
28-06-2011 25250
27-06-2011 25195
24-06-2011 24945
23-06-2011 25105
22-06-2011 25100
21-06-2011 25275
20-06-2011 24675
17-06-2011 25095
16-06-2011 24745
15-06-2011 25550
14-06-2011 25345
13-06-2011 24600
10-06-2011 25955
09-06-2011 25650
08-06-2011 25550
07-06-2011 25805
06-06-2011 26005
03-06-2011 26400
02-06-2011 27375
01-06-2011 27850