We find the metal markets a little mixed. Since April, we have seen the Australian Dollar HSRA average 0.93_ _, and this month may be no different with the rate yesterday coming in at 0.9329. When the exchange rate remains as steady as we have seen, we are directly affected by movements in the USD metal market prices.
Although markets have been reasonably steady for the past few months, we are seeing a softening of Iron Ore and Copper, while Aluminium seems to be reasonably steady.
**** DJ Copper Closes Down, China Anchors Prices ****
By Ese Erheriene
LONDON–Copper futures closed lower on the London Metal Exchange on Monday, weighed down by poor manufacturing data from China, while aluminum edged sideways after its recent winning streak. The LME’s three-month copper contract was down 0.6% at $6,941 a metric ton at the PM kerb close. Aluminum breached another 18-month high, reaching $2,113, but ultimately settled 0.07% lower at $2,095.00. The fall in the price of copper follows continued concern over the strength of Chinese demand for the metal, on top of general weakness in the market from the middle of the previous week. The National Bureau of Statistics of China announced that the official manufacturing purchasing managers index fell to 51.0 in August from 51.7 in July, supported by HSBC’s revising of China’s PMI down from 50.3 to 50.2. As China makes up approximately 40% of global copper demand, most of which is used in manufacturing and construction, the price of the industrial metal is particularly sensitive to movements in the Asian country’s economic fortunes. ”Prices remained “soft” as Chinese PMI data for August showed factory output still slowing,” said Sucden Financial in a note.