LONDON, Dec 6 Most industrial metals prices fell
on Thursday and copper hit a three-week low after the arrest of
a top Chinese executive in Canada dampened hopes for a
resolution to the U.S.-China trade conflict.
LONDON, Nov 28 Zinc prices rose on Wednesday as
falling stockpiles and rising premiums for nearby metal
highlighted a short-term supply squeeze, halting a slide to
LONDON The global platinum market will be oversupplied by around half a million ounces both this year and next, an industry report said on Wednesday, suggesting little respite for producers facing prices languishing near 10-year lows.
* Surplus seen at 505,000 oz this year, 455,000 oz next year
* Fall in autocatalyst demand to slow next year
* Jewellery, industrial and investment demand to rise in
* Platinum supply-demand balance: https://tmsnrt.rs/2RdcdAF
* 2018 asset returns: http://tmsnrt.rs/2jvdmXl
By Peter Hobson
LONDON, Nov 28 The global platinum market will
be oversupplied by around half a million ounces both this year
and next, an industry report said on Wednesday, suggesting
little respite for producers facing prices languishing near
In its latest Platinum Quarterly report, the World Platinum
Investment Council (WPIC) revised its forecast for oversupply
this year to 505,000 ounces from 295,000 ounces, blaming weak
demand for platinum jewellery, and said 2019 would see a surplus
of 455,000 ounces.
"Supply will grow (in 2019) but demand will grow even more,
and reduce the surplus slightly," said the WPIC's head of
research Trevor Raymond.
Platinum prices hit a 10-year low in August and are
down 9 percent this year.
The market flipped from deep deficit earlier this decade to
surplus as falling use by automakers, jewellers and investors
pushed demand from 8.5 million ounces in 2013 to an estimated
7.5 million ounces this year, said the WPIC, which is funded by
Raymond said the decline in demand from carmakers would slow
next year, while jewellery demand would expand for the first
time since 2014, and consumption by industry and investors would
grow strongly, lifting total demand by 2 percent.
Demand from automakers -- which embed platinum in
emissions-reducing catalytic converters and account for around
40 percent of platinum use -- will fall by 1 percent in 2019
after a 7 percent plunge this year as a decline in sales of
diesel vehicles in Europe slows, the WPIC said.
Carmakers use both platinum and sister metal palladium in
autocatalysts, but platinum is used more in diesel engines whose
popularity plummeted after Volkswagen was found to have cheated
emissions tests in 2015.
The WPIC said it assumed no significant substitution next
year of palladium for platinum, which is trading at a roughly
$300 discount to its sister metal after last year becoming
cheaper than palladium for the first time since 2001.
Demand for platinum in jewellery will rise by 1 percent in
2019 after a 2 percent decline this year, the WPIC said.
Use in industry will increase by 4 percent in 2019 after an
8 percent rise this year and demand for platinum bars and coins
for investment will double from 125,000 ounces this year.
On the supply side, the WPIC said higher output at mines in
South Africa and North America and increased recycling would
push supply up 2 percent in 2019 after a 1 percent fall this
PLATINUM SUPPLY/DEMAND ('000 oz)*
Q3 2018 Q2 2018 Q3 2017 2018(f) 2019(f)
Mine supply 1,630 1,655 1,570 6,065 6,170
Recycling 485 480 480 1,910 1,935
TOTAL SUPPLY 2,115 2,135 2,055 7,975 8,105
Automotive demand 720 805 785 3,110 3,075
Jewellery demand 580 590 580 2,405 2,430
Industrial demand 450 470 425 1,830 1,895
Investment 60 -55 -10 125 250
TOTAL DEMAND 1,810 1,810 1,780 7,470 7,650
Balance 305 325 270 505 455
Above-ground stocks 2,665 3,120
* Source: World Platinum Investment Council, Platinum
Quarterly Q3 2018
(Reporting by Peter Hobson; editing by David Evans)
(Updates with closing prices)
By Peter Hobson
LONDON, Nov 26 Zinc prices fell for a second
session on Monday as expectations of weaker demand from Chinese
steel mills overpowered signs that the market is short of metal.
Most other industrial metals also fell on caution over the
outcome of trade talks between U.S. President Donald Trump and
Chinese President Xi Jinping later this week that could
influence demand for commodities.
Benchmark three-month zinc on the London Metal Exchange
(LME) closed down 1.3 percent at $2,487 a tonne after
falling 2.4 percent on Friday.
The metal used to galvanise steel was under pressure after
demand concerns drove Chinese steel prices down more than 5
percent to a five-month low.
Zinc fell 2.5 percent on the Shanghai Futures Exchange
(ShFE) , its biggest one-day drop since August. China is
the biggest consumer of zinc and other industrial metals.
But prices are supported by stockpiles at 10-year lows and
shortages of immediately available metal, said ING analyst
"Fundamentals (for zinc) are constructive, at least in the
short term," he said.
ZINC SPREAD: The premium of cash zinc to the three-month
contract fell to $63 from last week's two-decade high
of $97 but remains unusually high, suggesting a shortage of
STOCKS: Stocks of zinc in LME-registered warehouses have
halved to 121,550 tonnes since August, a 10-year low, while
inventories in ShFE warehouses at around 35,000 tonnes are down
from almost 160,000 tonnes in March.
TECHNICALS: Zinc has fallen below its 50- and 100-day moving
averages, worsening its technical picture.
SPECULATORS: Speculative investors are neutral on zinc, with
brokers Marex Spectron estimating their net short position at
1.4 percent of active contracts.
DEFICIT: The roughly 13.5 million-tonne-a-year zinc market
had a 305,000 tonne deficit over January-August, according to
the International Lead and Zinc Study Group.
SUPPLY: Zinc prices have fallen 30 percent from a February
high as investors anticipated a surge in refined zinc output
after a clutch of new mine openings.
But delays in that new supply due to bottlenecks at smelters
across Asia have put a floor under prices, helping them recover
from an August low of $2,283 a tonne.
CHINA GROWTH: Economic growth in China is expected to hit
6.6 percent this year and slow to 6.3 percent in 2019,
economists from Beijing's Renmin University said.
PRICES: LME Copper ended down 0.3 percent at $6,189
a tonne, aluminium finished up 0.1 percent at $1,951.50,
nickel lost 0.4 percent to $10,875, lead slipped
1.3 percent to $1,943 and tin closed up 0.5 percent at
(Additional reporting by Mai Nguyen in Singapore and Melanie
Burton in Melbourne; Editing by Mark Potter, Jan Harvey and
LONDON, Nov 23 Nickel prices on Friday touched
their lowest since October last year, pulled down by worries
about a supply surplus in 2019 and weaker demand from China, the
largest consumer of the metal.
LONDON Members of the London Bullion Market Association (LBMA) traded at least 30.2 million ounces of gold worth $36.9 billion (28.7 billion pounds) each day last week, the LBMA said on Tuesday, presenting new data that gives the most accurate picture yet of the London market.
(Updates with closing prices)
By Peter Hobson
LONDON, Nov 16 Copper rose on Friday as signs of
supply tightness supported prices, but worries about the outcome
of the U.S.-China trade dispute limited gains.
Supply shortages also powered zinc towards its biggest
weekly gain since September.
Benchmark copper on the London Metal Exchange closed
up 0.3 percent at $6,205 a tonne, 2.4 percent higher this week.
Prices rallied after news that Chinese smelter Jiangxi
Copper and miner Antofagasta had agreed
lower treatment and refining charges for 2019, said ING analyst
"This is showing that either there is a tightening in
concentrate supply or too much spare smelting capacity in China.
I think it's a mixture of the two," he said.
China is the world's biggest consumer of metals.
Metals received a further boost when the U.S. dollar
weakened after Federal Reserve officials appeared to question
the pace of interest rate rises and from strong U.S.
A weaker dollar makes metals cheaper for buyers who hold
But while supply-demand fundamentals were good for copper,
uncertainty about U.S.-China trade talks -- which has helped
push metals prices sharply lower since the summer -- were still
weighing on prices, Patterson said.
COPPER STOCKS: Headline copper inventories in LME-registered
warehouses fell by 5,425 tonnes to 161,025
tonnes, nearing last month's 10-year low of 136,675 tonnes.
SPREAD: Another signal of tight supply is the premium of
cash copper over the three-month contract , which has
drifted from a near four-year high of $47 last month to $18.50
but is still far above recent norms.
TECHNICALS: Copper was holding above its technically
important 50-day and 100-day moving averages around
U.S.-CHINA TRADE TALKS: A senior White House official told
Reuters a written response sent this week by China to U.S.
demands for trade reforms was unlikely to trigger a breakthrough
ZINC: Benchmark LME zinc closed 1.2 percent higher
at $2,607 a tonne, up 3.5 percent this week, with stockpiles in
the LME's warehouse system falling to a 10-1/2-year low of
SPREAD: The premium of cash zinc over three-month metal
has surged to $78.75, the highest since October last
year, from a discount of more than $20 two months ago,
suggesting a shortage of available material.
OTHER METALS: LME aluminium finished up 0.6 percent
at $1,940 a tonne, nickel ended 0.9 percent higher at
$11,360, lead gained 3.6 percent to $1,998 and tin
closed down 0.2 percent at $19,350.
(Additional reporting by Mai Nguyen
Editing by Edmund Blair, Dale Hudson and Kirsten Donovan)
LONDON Palladium <XPD=> is outgunning other precious metals, with a surge to record highs putting it within a whisker of parity with gold <XAU=> for the first time in 16 years.
LONDON The Bank of France has partnered with U.S. banking group JPMorgan to expand its range of gold bullion services for central banks, sources familiar with the matter said on Monday.