Monthly Metal Review
- May 2019
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- February 2019
- January 2019
- December 2018
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- May 2018
Geneva-based Transamine Trading celebrated its 60th anniversary during LME week in London. Transamine is the world's oldest independent and privately held commodities trading company specializing in non-ferrous raw materials. The firm evolved from a modest, Paris-based trading house in 1953 into today’s modern, dynamic company with global reach in all aspects of non-ferrous raw-materials, production, and trade.
China dashed expectations that the London Metal Exchange would soon have warehouses in Shanghai’s free-trade zone. Beijing officials upheld a ban on overseas commodity-exchange warehouses. China’s Securities and Regulatory Commission was reportedly concerned about impact on the Shanghai Futures Exchange. LME CEO Garry Jones said, before Beijing’s denial became news, that opening metal warehousing facilities in China is some way off.
The Financial Conduct Authority (FCA), the UK’s financial monitor, said officials were visiting European commodity warehouses, preparing for new EU market-abuse rules. They are designed to prevent fraud, with increased cooperation between financial and commodity regulators. The LME consulted with the FCA on its own warehousing policy following wait-time and cost complaints. Alcoa urged regulators to intervene. An LME warehousing-reform decision has reportedly been made, but was not immediately released.
The U.S. avoided financial default when Congressional Democrats and moderate Republicans voted to reopen the partially-shut federal government and raise America’s $16.7-trillion debt limit to pay its bills. But the deal that reopened government lasts only until January 15 and debt-limit authorization ends February 7. Tea-Party Republicans who sparked the crisis have not ruled out more conflict. Standard & Poor’s estimated the 16-day October shutdown and fiscal scare cut 0.6 percent from inflation-adjusted GDP, equivalent to $24 billion.
Shutdown fallout is likely to delay Federal Reserve stimulus reduction. Policy makers could drop monthly asset buying from $85 billion to $70 billion at a March meeting.
The U.S. added a modest 148,000 jobs in September. But the unemployment rate fell to 7.2 percent, from 7.3. Construction companies added 20,000 jobs. September home sales fell 1.9 percent to an annual rate of 5.29 million units.
China’s economy expanded in the third quarter at a faster 7.8-percent pace on-year, up from 7.5-percent second-quarter growth. Investment in fixed assets accounted for 56 percent of growth. September passenger-car sales reached nearly 1.6 million. China exports fell 0.3 percent on-year in September, but imports surged 7.4 percent on-year. Copper imports rocketed 18 percent to 457,847 tonnes, an 18-month high. Bonded-warehouse stocks dropped more than 60 percent since January’s 1-million-tonne high. Third-quarter copper imports leapt 21.4 percent over the previous quarter to 1.26 million tonnes.
Spain emerged from recession in the third quarter, burdened with a 26-percent jobless rate and dependent on the export sales that pulled it from recession. In the UK, third-quarter economic output rose by 0.8 percent whilst the construction sector expanded 2.5 percent.
UK car production rose an annual 9.9 percent in September on-month to 140,888 units, pushing output for the first nine months to 1.13 million; up 4 percent on-year. EU-wide, monthly car sales rose the most in more than two years. September registrations jumped 5.5 percent.
Eurozone consumer price inflation slowed to 1.1 percent in September, down from 1.3 percent on-month. Industrial production rose by 1 percent in August, led by Portugal’s 8.2-percent production growth. Germany was up 1.8 percent and France grew 0.2 percent. Italy fell 0.3 percent.