With the birth of William and Kates little boy, there will surely be some celebration for our friends in London today. Irrespective of your level of excitement for the Royal Family today, it was pleasing to see all good news on the television this morning, a great way to start the day!
In market news there is not a lot to report, LME prices are up ever so slightly, and so is the Australian dollar resulting in steady Australian dollar pricing.
**** China Lending Move Supports –Newedge **** By Francesca Freeman @ dowjones.com
LME base metals are higher, helped by a slightly weaker dollar. The People’s Bank of China’s removal of the government-mandated floor on lending rates has also buoyed base metal sentiment, says Richard Fu, head of Asian commodities trading at Newedge. The move comes just one month after Chinese banks were rocked by a severe liquidity squeeze that resulted in sharp losses for Asian equities and pressure on base metal prices. China is the world’s largest metal consumer, accounting for around 40% of global copper demand.
**** Copper Likely Below $7,500/Ton In 2013 – OCBC **** By Aarpan Mukherjee @ wsj.com
Copper production is most likely to remain strong in 2H while China engages its structural reform at the expense of economic growth amid recession in Europe, OCBC says in a note; “the lackluster copper demand seen in Europe and China, which account for more than 60% of total copper consumption, was the main drag to copper demand in 1H13, and consequently ballooned inventories given the strong copper supply over the same period,” it says. It notes despite weak demand, copper production across the globe remained strong with BHP and Rio Tinto raising their production targets. OCBC adds that copper production is likely to remain strong in 2H13. “As such, copper is likely to remain soft below its $7,500/ton handle for the year.”