Its been a quiet week on the commodities with the AUD/USD and the LME prices all relatively steady. It could be all the London commodity traders were too busy watching the Olympics! The only commodity with much movement is Iron Ore which has now dropped to a 2-1/2 year low as the world steel market suffers from slow demand.
**** Copper awaits Chinese cue **** RBS 13 Aug.
Copper prices have been consolidating with a negative bias and much depends on the manufacturing data from China to determine how they will move over the coming months. In the London Metal Exchange, copper prices had hit the record high level of USD 10,190 per tonne in February last year. From there, prices have been falling through August as the euro zone crisis deepened and fell to a low of USD 6,635 in early October. On the back of Chinese manufacturing, prices recovered to USD8,700 levels in April. But, the official Chinese purchasing managers index (PMI) fell to a seven- month low of 50.2 in June and it further fell to 50.1 in July. Copper LME now stands at USD 7,430
**** Iron Ore-Spot prices at 31-month low, may fall further ****
SINGAPORE, Aug 13 (Reuters) – Sellers of foreign iron ore cargoes to China slashed prices further on Monday as the benchmark rate dropped to its lowest in more than 2-1/2 years, with losses likely to deepen further as weak steel demand forces mills to cut output. Iron ore has fallen 24 percent from this year’s peak near $150 in April as demand from the world’s top consumer sagged along with its economy.
**** Copper Stockpiles in Shanghai Drop Most in Two Months ****
Copper inventories monitored by the Shanghai Futures Exchange dropped by the most in two months, while those of zinc declined for a seventh week, data from the bourse showed today. Stockpiles of copper fell 6,059 metric tons, or 3.7 percent, to 158,052 tons this week, according to a survey of 10 warehouses in Shanghai, the exchange said on its website.