Metals & Energy Daily 12 AUG 2013
Market News Crude shrinks weekly losses on China Industrial Output
Crude oil rose for the first time in six days and recovered back most of the loses it incurred during the week on the back of encouraging Chinese industrial production as China is the second-biggest oil-consuming country, it boosted the demand prospect of crude oil in future and also sentiment of the market. China’s National Bureau of Statistics showed factory output increased 9.7 percent in July, 0.8 percentage point more than forecast. There have been recent signs of strength in oil markets with a 3.1 million-barrels-a-day surge in world refinery operating rates in June. The International Energy Agency warned of declining supply from OPEC members Libya and Iraq, while lifting its forecast demand for OPEC oil by 200,000 barrels a day from its previous forecast to 29.8 million barrels. The IEA, however, said strong supply growth from non-OPEC producers and easing demand from refiners in coming months would help offset supply issues elsewhere. Crude oil for September delivery rose $2.57, or 2.5%, to close at $105.97 a barrel in Nymex floor trade. That left the contract with a 0.9% weekly fall. The European benchmark, Brent Crude Oil traded at a $2.25 premium to WTI, down from $3.28 yesterday.
Gold rises for third day on higher China demand expectation
Gold up for the third consecutive day on speculation that the demand from China will be higher amid signs of a pickup in the economy in China, the world’s second-biggest consumer of the metal. Silver advanced to a two-week’s high. In July, China’s industrial output rose more than estimated by analysts from a year earlier. Government data showed today, 9.7% rise in Chinese industrial production, fastest pace since February.. Also, retail sales in July climbed 13.2%, slightly slower than 13.3% in June, though it still marked the second-best month this year. Chinese stocks advanced after the industrial output and retail sales reports. There is optimism about higher demand from China as the economy improves; the bullish mood in the industrial-metal complex is helping gold and silver to recover the ground. Gold for December delivery closed at $1,312.20 an ounce on the New York Mercantile Exchange. For the week, the contract rose $1.70 from last Friday’s closing level of $1,310.50.
Copper Pares Weekly Gain Ahead of China Industrial Output Data
Copper pared a weekly advance as investors weighed China’s smaller-than-expected inflation rate and ahead of industrial output data. Copper for delivery in three months on the London Metal Exchange fell 0.6 percent to $7,141.25 a metric ton at 11:25 a.m. in Shanghai. The metal has climbed 2 percent this week.
China’s July consumer price index rose 2.7 percent from a year earlier, smaller than a 2.8 percent projection, while producer prices fell 2.3 percent from a year earlier, compared with a median estimate of 2.1 percent. China releases data for industrial production this afternoon.
The CPI data is a bit disappointing because that also mirrors relatively weak social consumption in China Eight traders and five were bearish and six neutral. The LME benchmark contract rose to an eight-week high yesterday after imports by China climbed to a 14-month high.Copper for delivery in September on the Comex in New York lost 0.5 percent to $3.2555 a pound. Copper for delivery in November on the Shanghai Futures Exchange was little changed at 51,530 yuan ($8,424) a ton.On the LME, nickel, aluminum and zinc fell. Tin was little changed at $21,685 a ton after a seven-day rally and is the best-performing base metal this year.
Market News Crude shrinks weekly losses on China Industrial Output
Crude oil rose for the first time in six days and recovered back most of the loses it incurred during the week on the back of encouraging Chinese industrial production as China is the second-biggest oil-consuming country, it boosted the demand prospect of crude oil in future and also sentiment of the market. China’s National Bureau of Statistics showed factory output increased 9.7 percent in July, 0.8 percentage point more than forecast. There have been recent signs of strength in oil markets with a 3.1 million-barrels-a-day surge in world refinery operating rates in June. The International Energy Agency warned of declining supply from OPEC members Libya and Iraq, while lifting its forecast demand for OPEC oil by 200,000 barrels a day from its previous forecast to 29.8 million barrels. The IEA, however, said strong supply growth from non-OPEC producers and easing demand from refiners in coming months would help offset supply issues elsewhere. Crude oil for September delivery rose $2.57, or 2.5%, to close at $105.97 a barrel in Nymex floor trade. That left the contract with a 0.9% weekly fall. The European benchmark, Brent Crude Oil traded at a $2.25 premium to WTI, down from $3.28 yesterday.
Gold rises for third day on higher China demand expectation
Gold up for the third consecutive day on speculation that the demand from China will be higher amid signs of a pickup in the economy in China, the world’s second-biggest consumer of the metal. Silver advanced to a two-week’s high. In July, China’s industrial output rose more than estimated by analysts from a year earlier. Government data showed today, 9.7% rise in Chinese industrial production, fastest pace since February.. Also, retail sales in July climbed 13.2%, slightly slower than 13.3% in June, though it still marked the second-best month this year. Chinese stocks advanced after the industrial output and retail sales reports. There is optimism about higher demand from China as the economy improves; the bullish mood in the industrial-metal complex is helping gold and silver to recover the ground. Gold for December delivery closed at $1,312.20 an ounce on the New York Mercantile Exchange. For the week, the contract rose $1.70 from last Friday’s closing level of $1,310.50.
Copper Pares Weekly Gain Ahead of China Industrial Output Data
Copper pared a weekly advance as investors weighed China’s smaller-than-expected inflation rate and ahead of industrial output data. Copper for delivery in three months on the London Metal Exchange fell 0.6 percent to $7,141.25 a metric ton at 11:25 a.m. in Shanghai. The metal has climbed 2 percent this week.
China’s July consumer price index rose 2.7 percent from a year earlier, smaller than a 2.8 percent projection, while producer prices fell 2.3 percent from a year earlier, compared with a median estimate of 2.1 percent. China releases data for industrial production this afternoon.
The CPI data is a bit disappointing because that also mirrors relatively weak social consumption in China Eight traders and five were bearish and six neutral. The LME benchmark contract rose to an eight-week high yesterday after imports by China climbed to a 14-month high.Copper for delivery in September on the Comex in New York lost 0.5 percent to $3.2555 a pound. Copper for delivery in November on the Shanghai Futures Exchange was little changed at 51,530 yuan ($8,424) a ton.On the LME, nickel, aluminum and zinc fell. Tin was little changed at $21,685 a ton after a seven-day rally and is the best-performing base metal this year.
