Monthly Metal Review

Overview

After years of losses, commodities are ending higher this year 2016 confirming that the prolonged decline in markets such as oil and metals is finally having an effect, closure of mines, cuts in capital spending by producers have begun to choke off forward supplies as global demand creeps higher and therefore prices should go up to increase supply. The Bloomberg Commodity index, a basket of 22 futures contracts, has risen nearly 10 per cent in 2016, on pace for its first annual rise since 2010. The performance has varied widely, with Zinc up more than 60 per cent this year, diesel fuel up about 45 per cent and wheat suffering a 12 per cent fall. 2016 has continued one of the major trends in recent years – The decline in base metal in-ventories held in exchange warehouses. With final year-end figures set to be published, exchange inventories of Aluminum, Zinc and Tin are almost certain to be the lowest seen this decade. Even with the SHFE build seen this year, total nickel stocks are down, leaving copper as the exception to the rule with inventories up on end-2015. The U.S. Federal Reserve raised its benchmark interest rate by 25 basis points to 0.5-0.75 percent, pushing the U.S. dollar higher and weighing on pre-cious metals. Fed officials said inflation expectations increased considerably whilst the labor market is tight-ening. Three quarter-point rate increases are expected in 2017. Inflation has firmed toward the Fed’s 2-percent target, unemployment has dipped further, and the President-elect pledged tax cuts and infrastructure spending could warrant Fed tightening. Australia’s government cut its economic-growth forecasts, predicting larger-than-expected budget deficits in the next four years and threatening its triple-A credit rating. GDP growth was forecast at 2 percent for 2016, down from a previous 2.5-percent estimate. The government forecast a budget deficit of A$10 billion in 2019-20, equivalent to 0.5 percent of GDP. The Australian economy fell by 0.5 per cent in the third quarter. Indonesian officials were considering easing a scheduled 12-January export ban on copper concen-trates, partly processed raw nickel and bauxite. Un-processed gold, silver, tin and chromium would re-main barred, Jakarta media said. A 2014 ore-shipments ban required miners to build smelters lo-cally and halt mineral exports in January. But Indone-sia's coordinating minister for economic affairs said copper-concentrates exports would be allowed if miners get a special mining license, pay export taxes and build smelters within five years. The European Central Bank will extend its bond-buying stimuli by nine months, but cut monthly purchases by €20 billion tapering its monthly asset buys from €80 billion to €60 billion. The quantitative easing program was to end in March.

Daily Prices

December 2016

Copper
Date(Fix.) ($/MT)
Average 5666.25
30-12-2016 5501
29-12-2016 5514
28-12-2016 5486
23-12-2016 5482
22-12-2016 5426
21-12-2016 5498.5
20-12-2016 5485.5
19-12-2016 5561
16-12-2016 5649
15-12-2016 5682.5
14-12-2016 5735
13-12-2016 5765.5
12-12-2016 5757
09-12-2016 5824
08-12-2016 5838
07-12-2016 5903.5
06-12-2016 5856
05-12-2016 5851.5
02-12-2016 5736
01-12-2016 5773
Silver
Date(Fix.) ($/OZ)
Average 16.38
30-12-2016 16.24
29-12-2016 16.06
28-12-2016 15.85
23-12-2016 15.74
22-12-2016 15.77
21-12-2016 16.03
20-12-2016 15.8
19-12-2016 16
16-12-2016 16.05
15-12-2016 16.14
14-12-2016 17.11
13-12-2016 17.01
12-12-2016 16.86
09-12-2016 16.95
08-12-2016 17.13
07-12-2016 16.77
06-12-2016 16.79
05-12-2016 16.62
02-12-2016 16.35
01-12-2016 16.3
PM MEAN AM Gold
Date(Fix.) ($/OZ)
Average 1152.17
30-12-2016 1159.1
29-12-2016 1146.8
28-12-2016 1139.75
23-12-2016 1131
22-12-2016 1130.55
21-12-2016 1134.4
20-12-2016 1132.75
19-12-2016 1137.6
16-12-2016 1134.85
15-12-2016 1132.45
14-12-2016 1160.95
13-12-2016 1157.35
12-12-2016 1154.4
09-12-2016 1168.9
08-12-2016 1174.75
07-12-2016 1171.25
06-12-2016 1171.15
05-12-2016 1164.9
02-12-2016 1171.65
01-12-2016 1168.75
Date(Fix.) ($/OZ)
Average 1151.47
30-12-2016 1159.1
29-12-2016 1146.35
28-12-2016 1137.175
23-12-2016 1131
22-12-2016 1130.95
21-12-2016 1134.025
20-12-2016 1129.225
19-12-2016 1136.925
16-12-2016 1133.225
15-12-2016 1129.7
14-12-2016 1161.6
13-12-2016 1157.95
12-12-2016 1155.25
09-12-2016 1166.25
08-12-2016 1172.9
07-12-2016 1174.45
06-12-2016 1171.825
05-12-2016 1163.55
02-12-2016 1172.575
01-12-2016 1165.3
Date(Fix.) ($/OZ)
Average 1150.77
30-12-2016 1159.1
29-12-2016 1145.9
28-12-2016 1134.6
23-12-2016 1131
22-12-2016 1131.35
21-12-2016 1133.65
20-12-2016 1125.7
19-12-2016 1136.25
16-12-2016 1131.6
15-12-2016 1126.95
14-12-2016 1162.25
13-12-2016 1158.55
12-12-2016 1156.1
09-12-2016 1163.6
08-12-2016 1171.05
07-12-2016 1177.65
06-12-2016 1172.5
05-12-2016 1162.2
02-12-2016 1173.5
01-12-2016 1161.85
Lead
Date(Fix.) ($/MT)
Average 2230.83
30-12-2016 1985
29-12-2016 1990.5
28-12-2016 2070
23-12-2016 2087
22-12-2016 2092
21-12-2016 2168
20-12-2016 2183
19-12-2016 2185
16-12-2016 2263
15-12-2016 2314
14-12-2016 2342
13-12-2016 2377
12-12-2016 2310
09-12-2016 2310
08-12-2016 2331
07-12-2016 2369
06-12-2016 2307
05-12-2016 2285
02-12-2016 2274
01-12-2016 2374
Zinc
Date(Fix.) ($/MT)
Average 2671.70
30-12-2016 2563
29-12-2016 2540
28-12-2016 2561.5
23-12-2016 2587
22-12-2016 2555
21-12-2016 2604.5
20-12-2016 2615
19-12-2016 2632
16-12-2016 2725
15-12-2016 2760.5
14-12-2016 2736.5
13-12-2016 2735.5
12-12-2016 2704
09-12-2016 2709.5
08-12-2016 2744.5
07-12-2016 2821.5
06-12-2016 2730.5
05-12-2016 2705.5
02-12-2016 2663
01-12-2016 2740
Tin
Date(Fix.) ($/MT)
Average 21286.25
30-12-2016 21100
29-12-2016 21150
28-12-2016 21100
23-12-2016 21250
22-12-2016 21060
21-12-2016 21100
20-12-2016 21185
19-12-2016 21225
16-12-2016 21350
15-12-2016 21255
14-12-2016 21550
13-12-2016 21500
12-12-2016 21100
09-12-2016 21300
08-12-2016 21395
07-12-2016 21425
06-12-2016 21425
05-12-2016 21500
02-12-2016 21355
01-12-2016 21400
Nickel
Date(Fix.) ($/MT)
Average 11013.25
30-12-2016 10010
29-12-2016 10035
28-12-2016 10140
23-12-2016 10570
22-12-2016 10585
21-12-2016 10885
20-12-2016 10980
19-12-2016 10850
16-12-2016 11130
15-12-2016 11245
14-12-2016 11365
13-12-2016 11410
12-12-2016 11275
09-12-2016 11330
08-12-2016 11370
07-12-2016 11550
06-12-2016 11520
05-12-2016 11680
02-12-2016 11125
01-12-2016 11210
Cobalt
Date(Fix.) ($/MT)
Average 31788.00
30-12-2016 32900
29-12-2016 32750
28-12-2016 32500
23-12-2016 32510
22-12-2016 32700
21-12-2016 32500
20-12-2016 32250
19-12-2016 32500
16-12-2016 32400
15-12-2016 32250
14-12-2016 32000
13-12-2016 31500
12-12-2016 31750
09-12-2016 31500
08-12-2016 31000
07-12-2016 31000
06-12-2016 30750
05-12-2016 31000
02-12-2016 30000
01-12-2016 30000