Metals &Mining Alert:Daily prices and news,Gold declines on b-t-e US jobs data
Industrials (/lb): aluminum $0.87(-0.3%), copper $2.89(+0.3%), lead $1.07(-0.3%), molybdenum $7.14(+0.0%); nickel $4.65(-1.3%); zinc $1.28(+0.7%);
Precious (/oz): gold $1,259(-0.8%), silver $16.27(-2.4%); Steel (/mt): ChinaHRC $580(+0.2%), SHFE Rebar $557(0.0%), MB Scrap Index $319(-0.6%);
Bulks: iron ore (/dmt) $74(+1.6%), coking coal (/mt) $191(+4.9%), freight (BCI)1,637(+2.2%); Energy: Brent (/bbl) $52.42(+0.8%), WTI (/bbl) $49.58(+1.1%),natural gas (/mmBtu) $2.77(-0.9%), thermal coal (/t) $95(-0.8%).
Gold price at $1,259/oz (-0.8% DoD) after b-t-e US jobs data (209k vs. cons. of180k and DBe 200k) boosted the US Dollar and made a stronger case foranother interest rate hike this year. Unemployment reached a 16-year low of4.3%. SPDR Gold Trust, world’s largest physically-backed gold fund, dropped55tons in July (-7%) to 792t, its largest monthly decline in 4-years. (Reuters)South Africa’s Mineral Resources Department withdraws plan to suspendissuance of new mining and prospecting rights. With ~25k jobs on the line andunemployment at a 14-year high of 28%, business confidence has beendecreasing and the Ministry has become increasingly worried with the latestretrenchment moves announced by companies representing the Chamber ofMines. The Chamber has also filed a court application, challenging theproposal to increase black ownership in mining firms. (Reuters)
Strong Chinese steel margins boosts iron ore to $74/t (+$5WoW) and cokingcoal to $191/t (+$12). China’s commitment to eliminating induction furnacecapacity continued to underpin demand for high-grade iron ore, with thespread between high and medium-grade widening to $17/t (+$1). News ofdeclining steel inventories restored confidence in steel demand and pricesupport for feedstock. Mine issues in Australia and recovery in Indian demandlent support to coal prices. (SBB)
US Oil & Gas rig count drops by 4WoW to 954(+490YoY). Oil-directed rigsfell by 1WoW to 765(+384YoY), whereas gas-directed rigs dropped by 3WoW to 189(+108YoY), for the week ending 7/28. Canadian count declinedby 3WoW to 217(+95YoY). (Baker Hughes)Teck Resources and United Steelworkers reach a tentative agreement forworkers at Highland Valley Copper mine, thereby avoiding a potential strike.Having been without a contract for nearly a year, they have arrived at a 5-yearagreement which does not include any of the concessions the company hasbeen calling for. (Mining.com)
Errata: In last Friday’s daily, we incorrectly attributed opinions expressed by aBloomberg Finance LP journalist, to Rio Tinto’s CEO, Mr. Jacques. Thejournalist’s view was that Rio Tinto should sell its 40% share in the Grasbergmine “by Christmas” and he expressed his personal opinions about recentfirings and waste management that are not the views of Rio Tintomanagement and should not be mistaken as such.
