Monthly Metal Review

Overview

The London Metal Exchange is looking towards the future and it seems to be in Asia. Hong Kong Exchanges and Clearing (HKEx) topped three US exchanges with a knockout $2.2-billion bid for the LME, making for a commodities-trading shift away from London and Chicago. HKEx wants warehouses on the Chinese mainland and has access to users and merchants there.

Bank of England Governor Mervyn King warned that the euro crisis is not yet even "halfway through", recommending to follow the reforms suggested by the Independent Commission on Banking. In what seemed to indicate a loosening of the austerity leash by German Chancellor Angela Merkel. EU leaders agreed in late June to help reduce runaway borrowing costs for Italy. Aiming to ease rules on using bailout funds of for ailing Spanish banks, and to create a single supervisory body for euro zone banks by January. The Euro Stoxx bank index has, in a year, shrunk 46 percent. Moody's downgraded the ratings of more than 15 giant European banks. The IMF said EU leaders should empower central bank to restart bond buying and pump money directly into stumbling banks.

China's economic indicators showed a slower growth in June. China's central bank cut interest rates for the first time since 2008. Economists expect the second-quarter growth to be over 7 percent. China’s May exports and imports grew twice as fast as expected, and crude-oil prices fell to an 18-month low in June.

Inflation spiked in India, setting the rupee at an all-time low against the dollar. India's gold market withered as a result.

On a slightly brighter note, US manufacturing showed some signs of recovery, although at a very slow pace. Commerce Department data showed durable goods orders climbed more than forecast in May. The National Association of Realtors said more Americans than expected signed to buy previously owned homes. Resales climbed 5.9 percent. US automakers had their best May since 2008. Operation Twist, a program that promotes selling short-term bonds and buying longer-term securities to support US recovery, was extended to 2013 by the Federal Reserve.

Overall the metal market has been rather quiet in June. After initial weakness early in the month, Copper and Zinc finally gained 3.8% and 1.21% respectively over the period. Meanwhile Lead and Tin were falling by 4.54% and 2.85%. The worries surrounding the sovereign debt in the European Monetary Union and their negative economic impact on other key economies such as the U.S or China led to a global metal market weakness with no clear direction.

However, investors' restored confidence, following the EU's late June summit, could have a strong impact on metals markets in the upcoming weeks.

Daily Prices

June 2012

Copper
Date(Fix.) ($/MT)
Average 7420.11
29-06-2012 7604.5
28-06-2012 7421
27-06-2012 7354
26-06-2012 7347
25-06-2012 7342.5
22-06-2012 7320
21-06-2012 7426
20-06-2012 7555.5
19-06-2012 7505.5
18-06-2012 7475.5
15-06-2012 7521
14-06-2012 7376.5
13-06-2012 7397.5
12-06-2012 7384
11-06-2012 7396
08-06-2012 7251.5
07-06-2012 7480.5
06-06-2012 7459.5
01-06-2012 7364
Silver
Date(Fix.) ($/OZ)
Average 28.05
29-06-2012 27.08
28-06-2012 26.81
27-06-2012 26.835
26-06-2012 27.44
25-06-2012 26.72
22-06-2012 26.81
21-06-2012 27.88
20-06-2012 28.37
19-06-2012 28.81
18-06-2012 28.43
15-06-2012 28.66
14-06-2012 28.88
13-06-2012 28.87
12-06-2012 28.54
11-06-2012 28.63
08-06-2012 28.17
07-06-2012 29.28
06-06-2012 29.36
01-06-2012 27.38
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1595.63
29-06-2012 1569.5
28-06-2012 1567.75
27-06-2012 1567.5
26-06-2012 1583.25
25-06-2012 1569
22-06-2012 1570.5
21-06-2012 1600
20-06-2012 1618.75
19-06-2012 1628.5
18-06-2012 1623.5
15-06-2012 1622.25
14-06-2012 1619
13-06-2012 1612.75
12-06-2012 1589.25
11-06-2012 1593
08-06-2012 1576
07-06-2012 1620.75
06-06-2012 1633.25
01-06-2012 1552.5
Date(Fix.) ($/OZ)
Average 1596.16
29-06-2012 1584
28-06-2012 1563.125
27-06-2012 1570.5
26-06-2012 1579.625
25-06-2012 1569.5
22-06-2012 1568
21-06-2012 1591
20-06-2012 1609.875
19-06-2012 1627
18-06-2012 1619.5
15-06-2012 1624.75
14-06-2012 1616.25
13-06-2012 1616.125
12-06-2012 1596.375
11-06-2012 1588.5
08-06-2012 1576.25
07-06-2012 1613.375
06-06-2012 1634.125
01-06-2012 1579.25
Date(Fix.) ($/OZ)
Average 1596.70
29-06-2012 1598.5
28-06-2012 1558.5
27-06-2012 1573.5
26-06-2012 1576
25-06-2012 1570
22-06-2012 1565.5
21-06-2012 1582
20-06-2012 1601
19-06-2012 1625.5
18-06-2012 1615.5
15-06-2012 1627.25
14-06-2012 1613.5
13-06-2012 1619.5
12-06-2012 1603.5
11-06-2012 1584
08-06-2012 1576.5
07-06-2012 1606
06-06-2012 1635
01-06-2012 1606
Lead
Date(Fix.) ($/MT)
Average 1854.74
29-06-2012 1796
28-06-2012 1769
27-06-2012 1744
26-06-2012 1768
25-06-2012 1792.5
22-06-2012 1791.5
21-06-2012 1842
20-06-2012 1899
19-06-2012 1885.5
18-06-2012 1893.5
15-06-2012 1914.5
14-06-2012 1885
13-06-2012 1883
12-06-2012 1893.5
11-06-2012 1895
08-06-2012 1884
07-06-2012 1916
06-06-2012 1907.5
01-06-2012 1880.5
Zinc
Date(Fix.) ($/MT)
Average 1855.79
29-06-2012 1843
28-06-2012 1799.5
27-06-2012 1759.5
26-06-2012 1794.5
25-06-2012 1799
22-06-2012 1799
21-06-2012 1849
20-06-2012 1886
19-06-2012 1876.5
18-06-2012 1894.5
15-06-2012 1908
14-06-2012 1886.5
13-06-2012 1885
12-06-2012 1878
11-06-2012 1881
08-06-2012 1873.5
07-06-2012 1898
06-06-2012 1897
01-06-2012 1852.5
Tin
Date(Fix.) ($/MT)
Average 19262.63
29-06-2012 18775
28-06-2012 18845
27-06-2012 18545
26-06-2012 18600
25-06-2012 18800
22-06-2012 18375
21-06-2012 19195
20-06-2012 19525
19-06-2012 19500
18-06-2012 19430
15-06-2012 19555
14-06-2012 19455
13-06-2012 19510
12-06-2012 19650
11-06-2012 19875
08-06-2012 19500
07-06-2012 19620
06-06-2012 19905
01-06-2012 19330
Nickel
Date(Fix.) ($/MT)
Average 16539.21
29-06-2012 16475
28-06-2012 16375
27-06-2012 16180
26-06-2012 16255
25-06-2012 16330
22-06-2012 16270
21-06-2012 16780
20-06-2012 17040
19-06-2012 16675
18-06-2012 16625
15-06-2012 16610
14-06-2012 16775
13-06-2012 17085
12-06-2012 17085
11-06-2012 16815
08-06-2012 16335
07-06-2012 16450
06-06-2012 16060
01-06-2012 16025
Cobalt
Date(Fix.) ($/MT)
Average 29065.79
29-06-2012 28000
28-06-2012 29000
27-06-2012 28200
26-06-2012 28000
25-06-2012 27500
22-06-2012 28450
21-06-2012 28000
20-06-2012 27000
19-06-2012 29000
18-06-2012 29500
15-06-2012 29850
14-06-2012 30500
13-06-2012 30100
12-06-2012 29000
11-06-2012 28500
08-06-2012 30550
07-06-2012 30550
06-06-2012 30550
01-06-2012 30000