Monthly Metal Review

Overview

The London Metal Exchange faces a new, more Asia-friendly future with ownership of the storied exchange transferring to Hong Kong Exchanges and Clearing. HKEx CEO Charles Li promised to tackle long withdrawal queues at LME warehouses.

BHP CEO Marius Kloppers said there will not be a return to record commodities prices seen just a few years ago at any time in the coming decade. Kloppers told Australian miners the supply shortages fueled China's once-roaring growth has been satisfied.

Copper producers are optimistic about the increase in the demand for nonferrous metals in 2013. That increase would be mostly driven by massive spending in infrastructure throughout China. Indeed Chinese officials already announced a plan of $ 150 billion to modernize the country's infrastructure. This an-nouncement was made right before Mr Xi's upcoming nomination as new Chairman of the People's Republic of China for a ten year term.

Late-October data showed the British economy inching out of recession with 1 percent Q3 growth. German business confidence, measured by the Ifo Institute, was at its in lowest in 2.5 years. French business activity was down for the eighth month straight. and three French banks, including BNP Paribas, were downgraded by Standard & Poor's.

Standard & Poor's cut its credit rating for Spain's largest lenders. Santander said Q3 profits fell more than 90 percent after taking provisions for bad prop-erty loans.

October opened with public sentiment in China up. The World Bank forecast 7.7-percent full-year China growth and cut 2012 growth prediction for developing Asia-Pacific economies to 7.2 percent from a May 7.6. China's economy grew 7.4 percent in Q3 on year. Data showed industrial production up 9.2 per cent on year in September compared with 8.9 in August.

China's inflation rate edged lower in September, to 1.9 from 2 percent. Exports rose 9.9 percent on year. Exports to the U.S. rose 5.5 percent in September on year but exports to Europe fell 10.7 percent on year.

China-Japan relations remained tense, with plunging sales of Japanese goods and vehicles in China in a dispute over uninhabited islands. China's finance minister and central-bank head skipped the IMF's Tokyo meeting.

The Q3 US economy grew more than expected, expanding at an annualised 2 percent rate, a figure bolstered by government-spending increases and new-housing construction. The jobless rate fell in September to 7.8, making the rate the lowest since January, 2009. US New-home construction jumped, building-permit applications were upped, and new-home sales rose. Home-mortgage-refinance applica-tions surged in the wake of the Federal Reserve's QE3 pledge to buy $40 billion in mortgage-backed securities monthly. The strenghthening US housing market should create a more positive sentiment in copper.

Eyes across the world will focus on the US on the first Tuesday of November for elections as tight races will determine not only the president, but the party majorities both in both chambers of their gov-ernment.

Daily Prices

October 2012

Copper
Date(Fix.) ($/MT)
Average 8069.52
31-10-2012 7819
30-10-2012 7760
29-10-2012 7720
26-10-2012 7765
25-10-2012 7852
24-10-2012 7860.5
23-10-2012 7861
22-10-2012 7983.5
19-10-2012 8121
18-10-2012 8210
17-10-2012 8112.5
16-10-2012 8141.5
15-10-2012 8130
12-10-2012 8179
11-10-2012 8212
10-10-2012 8124.5
09-10-2012 8183
08-10-2012 8133
05-10-2012 8299
04-10-2012 8325
03-10-2012 8276
02-10-2012 8340
01-10-2012 8191.5
Silver
Date(Fix.) ($/OZ)
Average 33.19
31-10-2012 32.28
30-10-2012 31.98
29-10-2012 31.82
26-10-2012 31.67
25-10-2012 32.08
24-10-2012 31.95
23-10-2012 31.71
22-10-2012 32.17
19-10-2012 32.33
18-10-2012 32.99
17-10-2012 33.03
16-10-2012 32.8
15-10-2012 33.22
12-10-2012 33.79
11-10-2012 34.25
10-10-2012 33.79
09-10-2012 33.87
08-10-2012 33.85
05-10-2012 34.85
04-10-2012 34.96
03-10-2012 34.72
02-10-2012 34.85
01-10-2012 34.35
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1746.35
31-10-2012 1718
30-10-2012 1713.5
29-10-2012 1712
26-10-2012 1704
25-10-2012 1715
24-10-2012 1708.5
23-10-2012 1717
22-10-2012 1725
19-10-2012 1732.75
18-10-2012 1748
17-10-2012 1747.75
16-10-2012 1737.5
15-10-2012 1747.25
12-10-2012 1767
11-10-2012 1767.25
10-10-2012 1763
09-10-2012 1770.75
08-10-2012 1769
05-10-2012 1790
04-10-2012 1786.5
03-10-2012 1777.25
02-10-2012 1778.5
01-10-2012 1770.5
Date(Fix.) ($/OZ)
Average 1746.80
31-10-2012 1718.5
30-10-2012 1711.75
29-10-2012 1710
26-10-2012 1710
25-10-2012 1715.25
24-10-2012 1707.5
23-10-2012 1714
22-10-2012 1725.875
19-10-2012 1734.875
18-10-2012 1745.5
17-10-2012 1748.375
16-10-2012 1741.75
15-10-2012 1741.625
12-10-2012 1766.875
11-10-2012 1768.125
10-10-2012 1764.625
09-10-2012 1772.375
08-10-2012 1771.25
05-10-2012 1787
04-10-2012 1789.125
03-10-2012 1776.25
02-10-2012 1777
01-10-2012 1778.75
Date(Fix.) ($/OZ)
Average 1747.25
31-10-2012 1719
30-10-2012 1710
29-10-2012 1708
26-10-2012 1716
25-10-2012 1715.5
24-10-2012 1706.5
23-10-2012 1711
22-10-2012 1726.75
19-10-2012 1737
18-10-2012 1743
17-10-2012 1749
16-10-2012 1746
15-10-2012 1736
12-10-2012 1766.75
11-10-2012 1769
10-10-2012 1766.25
09-10-2012 1774
08-10-2012 1773.5
05-10-2012 1784
04-10-2012 1791.75
03-10-2012 1775.25
02-10-2012 1775.5
01-10-2012 1787
Lead
Date(Fix.) ($/MT)
Average 2153.30
31-10-2012 2095.5
30-10-2012 2064.5
29-10-2012 2010
26-10-2012 2002
25-10-2012 2029.5
24-10-2012 2020
23-10-2012 2024
22-10-2012 2093.5
19-10-2012 2134.5
18-10-2012 2167
17-10-2012 2112
16-10-2012 2128
15-10-2012 2139
12-10-2012 2169
11-10-2012 2208
10-10-2012 2215
09-10-2012 2251
08-10-2012 2243
05-10-2012 2265
04-10-2012 2308.5
03-10-2012 2293.5
02-10-2012 2315
01-10-2012 2238.5
Zinc
Date(Fix.) ($/MT)
Average 1911.78
31-10-2012 1835.5
30-10-2012 1821.5
29-10-2012 1785
26-10-2012 1793
25-10-2012 1821.5
24-10-2012 1809
23-10-2012 1797
22-10-2012 1847
19-10-2012 1864
18-10-2012 1894
17-10-2012 1859.5
16-10-2012 1876
15-10-2012 1887.5
12-10-2012 1900.5
11-10-2012 1950.5
10-10-2012 1952
09-10-2012 1999
08-10-2012 2001.5
05-10-2012 2032
04-10-2012 2054
03-10-2012 2056
02-10-2012 2097.5
01-10-2012 2037.5
Tin
Date(Fix.) ($/MT)
Average 21320.65
31-10-2012 20145
30-10-2012 20070
29-10-2012 19845
26-10-2012 19925
25-10-2012 20550
24-10-2012 20375
23-10-2012 20480
22-10-2012 20955
19-10-2012 21730
18-10-2012 21800
17-10-2012 21305
16-10-2012 21425
15-10-2012 21250
12-10-2012 21785
11-10-2012 22050
10-10-2012 21685
09-10-2012 22105
08-10-2012 22100
05-10-2012 22455
04-10-2012 22230
03-10-2012 22100
02-10-2012 22110
01-10-2012 21900
Nickel
Date(Fix.) ($/MT)
Average 17245.43
31-10-2012 16235
30-10-2012 16000
29-10-2012 15870
26-10-2012 16100
25-10-2012 16405
24-10-2012 16300
23-10-2012 16185
22-10-2012 16730
19-10-2012 17005
18-10-2012 17135
17-10-2012 16805
16-10-2012 17030
15-10-2012 17205
12-10-2012 17235
11-10-2012 17645
10-10-2012 17735
09-10-2012 17930
08-10-2012 17930
05-10-2012 18575
04-10-2012 18650
03-10-2012 18620
02-10-2012 18840
01-10-2012 18480
Cobalt
Date(Fix.) ($/MT)
Average 26002.17
31-10-2012 25000
30-10-2012 25500
29-10-2012 25500
26-10-2012 25500
25-10-2012 26000
24-10-2012 26500
23-10-2012 27000
22-10-2012 27000
19-10-2012 26700
18-10-2012 27000
17-10-2012 26500
16-10-2012 27500
15-10-2012 27000
12-10-2012 27350
11-10-2012 27500
10-10-2012 27500
09-10-2012 27500
08-10-2012 2800
05-10-2012 27750
04-10-2012 28000
03-10-2012 28000
02-10-2012 28200
01-10-2012 30750