It’s been an uneventful flat week on the LME markets with Aluminium, Lead & Copper finishing the week with very little USD movement. The only movement has been in the AUD/USD which is now trading at 104.6 compared to 103.5 last week. With Christmas 27 days away we have noticed that LME market volatility has fallen away possibly due to the LME commodity traders spend too much time entertaining and lunching. The lack of any major economic news could also be a factor.
**** DJ MARKET TALK: Copper Supply Risks Still Prevalent – Macquarie ****
1637 GMT [Dow Jones] Challenges to global copper supply continue to present obstacles for the red metal’s market balance, says Macquarie, citing reduced year-on-year output from Codelco in particular. “While new mine output is likely in copper in 2013, existing mine output is the big concern,” Macquarie notes. “This is a major factor in why we believe copper mine output estimates for 2013 remain generally too high,” it adds, expecting 5% growth in copper mine output for next year. LME 3-month copper is now flat at $7,774.75/ton.
**** German hint of Greek debt relief raises euro hopes ****
BRUSSELS, Nov 26 (Reuters) – Three years into the euro zone’s debt crisis, Germany’s finance minister hinted tantalisingly last week at a potential breakthrough. Behind closed doors at a meeting in Paris of a small group of senior policymakers, Wolfgang Schaeuble indicated that Berlin could eventually agree to write off some of the money it has lent Greece, in order to make its debt sustainable.