As we start the final week of the 2012 Financial Year the Commodities prices continue to fall away. In the last week Copper has fallen $150Mt (USD7,505 to USD 7,342), Aluminium has fallen $65 (USD 1,882 to USD 1,817) and Lead has fallen $100Mt (USD 1,893 to USD 1,793).
For the local primary Aluminium industry, the low prices and rising electricity costs are starting to impact their ongoing viability with the press speculating yesterday that the Federal Government was about to announce a $42 million rescue package for Alcoa Port Henry Aluminium smelter to save 600 jobs. (Please find the attached graph showing Primary Aluminium Prices from May 1st till now)
**** DJ BASE METALS: LME Base Metals Mixed; Jitters Ahead of EU Summit ****
– LME Base metals mixed, with copper rising on bargain hunting
– Market participants say metals trading to remain jittery ahead of EU summit
– Look for opportunistic Chinese buying interest in LME copper if price continues to fall
By Alex Macdonald
LONDON (Dow Jones)–Base metals on the London Metal Exchange closed mixed in lackluster trading Monday as investors remained nervous about the state of the global economy, particularly Europe, and said trading was likely to remain jittery ahead a European Union summit this week.
“The market mood is still one of being negative and cautious about the macro” economic environment, said Robin Bhar of Societe Generale. Market participants are concerned about slower economic growth in China, the world’s largest commodities consumer, and the knock-on effects that the European sovereign-debt crisis may have on other economies, including the U.S., where the economic recovery remains fragile.
**** China considers adding metals to stockpile plan -sources **** By Polly Yam
HONG KONG, June 20 (Reuters) – China’s state economic planner is considering ways to reshape the country’s programme of stockpiling strategic materials and could include metals such as rare earths, tungsten, indium, molybdenum and tin, two sources with knowledge of the plan said.
Additional stockpiling moves by China, the world’s top copper buyer and second largest oil consumer, would be certain to benefit commodities prices , which have lost 9 percent this year, battered by bleak prospects for the global economy.
China already stockpiles copper and crude, but planner the National Development and Reform Commission has asked state-owned research bodies to research if the additional metals should be included, said one source, who declined to be identified.
The move follows a proposal by officials of the state planner at a meeting in Beijing last month for China to try and boost its stocks of strategic commodities at a time of low prices, said the source, who had direct knowledge of the plan but was not authorised to discuss details.
Planners would look into building stocks of metals of which China already is a major producer, such as rare earths, tungsten, molybdenum, antimony and tin, said a second source, also speaking on condition of anonymity.