Metals &Mining Alert:Daily prices and news,President Trump vows to cut trade deficit

Industrials (/lb): aluminum $0.87 (-0.5%), copper $2.72 (+1.2%), lead $1.04 (-0.8%), molybdenum $7.14 (+0.0%); nickel $4.35 (+0.3%); zinc $1.28 (+1.0%);Precious (/oz): gold $1,234 (+0.4%), silver $16.12 (+0.8%); Steel (/mt): ChinaHRC $559 (+0.1%), SHFE Rebar $534 (+1.1%), MB Scrap Index $295 (+1.0%);Bulks: iron ore (/dmt) $67 (+3.2%), coking coal (/mt) $169 (+0.9%), freight (BCI)933 (+0.0%); Energy: Brent (/bbl) $48.42 (-1.0%), WTI (/bbl) $46.02 (-1.1%),natural gas (/mmBtu) $3.02 (+1.3%), thermal coal (/t) $84 (+0.4%).

    President Trump vows to boost US manufacturing by cutting $64bn tradedeficit with Mexico. Separately, US Trade Representative released a reportoutlining goals for updating North American Free Trade Agreement. Aim is tostrengthen labor/environmental obligations and amend rules of origin so thatmore products are produced in the US. (Bloomberg Finance LP).

    Copper price reaches 4-month high of $2.72/lb (+1.2% DoD) as China datareveals faster-than-expected growth for 2Q17. Industrial production rose 7.6%YoY in June (vs. expectations of 6.5%). Recovery in manufacturing sector, alongwith government’s aim to contain financial risks without sacrificing growth couldresult in increased economic output, thereby increasing demand for copper.

    China accounts for ~50% of global copper demand. (Reuters, DB).

    International Lead and Zinc Study Group’s latest report shows deepeningdeficits in lead and zinc markets. YTD (thru May), deficit in zinc marketwidened to 178kt (vs.133kt in 2016) and inventories declined by 167kt. YTDglobal mine production rose 6.3% to 5.4mt. Global demand rose 1.1% asgrowth in US demand for refined zinc (+19%) was offset by decrease inChinese usage (-3%) and European consumption (-2%). (Mining.com).

    China’s crude steel output reaches an all-time high of 73mt in June (+1.3%MoM, +5.7% YoY). Daily output also averaged a record high of 2.4mt (+4.7%MoM). Output data reflects the increase in production by registeredsteelmakers who are replacing lost output from Induction furnaces (IF). IFoutput was not included in official output figures as most of it wasunderground. YTD output totaled 420m st (+4.6% YoY). (SBB).

    European Commission (EC) to set anti-dumping duties on hot-rolled coilimports from Russia, Ukraine, Iran and Brazil in the range of 5-33%. EC alsoplans to set a minimum import price of ?472/t to protect EU consumers. (SBB).

    Newmont retires $575m Convertible Senior Notes, due July 15th. Companyremains committed to reduce debt and enhance flexibility for funding highmarginprojects. (Company).

    The Washington Companies announces acquisition of Dominion Diamond for$1.2bn in cash. Transaction represents 44% premium to Dominions’ shareprice as of 3/17. Closing of the deal is subject to 67% shareholder approval andother customary approvals, which are expected by 4Q17. (Company)