Metals in the Americas:The Weekly Extract

The S&P 500 declined 1% WoW to 2,423 along with the S&P 500 M&M,which eased to 99 (-1% WoW). Iron ore surged 10% WoW as Chinesedemand remained strong as mills re-stocked and increased high-gradefeedstock purchases. Anticipation of stricter environment policies in Chinaled mills to lock in cargoes in advance at fixed prices. Cobalt rose 3%,followed by copper (+2%), aluminum (+2%), nickel (+1%) and coking coal(+1%). US HRC price increased 2% WoW to $605/t as recent price hikestake hold. Gold and silver declined 1% each, as the market awaits theFed’s commentary regarding the next expected rate hike.

    Industrial Metal equities continued rising 5% WoW largely on iron ore’sstrong gains (+10%) in addition to copper increasing (+2%). Precious Metalequities declined 4% as bullion prices were down. Steel & Service Centerequities increased 2% ahead of imminent Section 232 outcome. Aluminum& Specialty Metals decreased 4% as Arconic’s decline (-11% WoW) morethan-offset gains of other equities.

    Arconic decreased 11% WoW, the most within Aluminum & SpecialtyMetal equities, following news that its product was used in the GrenfellTower’s cladding system. Vale (+7% WoW) led the gains among IndustrialMetals as iron ore price rose $6/ton (DBe for each $1/t increase Vale’soperating income has a positive impact of $325m). Amongst PreciousMetals equities Goldcorp (-6% WoW) declined following announced sale ofSan Nicolas project and acquisition of Exeter. Within Steel & SC equities,Ryerson rose 8%, following release of quarterly guidance.