COMMODITY MARKET NEWS - 05 AUG 2016

COPPER:

The International Copper Study Group reported global copper ore output is expected to increase at an annual rate of 1 million tonnes or 4% by the year 2019.

LME copper will suffer pressure from firmer dollar and range USD 4,800-4,860/mt during Asian trading hours Friday.

ALUMINIUM:

China Aluminum International Trading Co. (Chalco Trading) raised aluminum prices in major markets today, it said on its WeChat.

The US dollar index rose following rate cut by the BOE and will rise further on expectations that US July non-farm payrolls will continue improving.

LEAD:

LME lead will face downward pressure due to firmer dollar and fluctuate between USD 1,780-1,800/mt during Asian trading hours Friday.

ZINC:

Teck Resources’ zinc concentrate output was 341,000 tonnes in the first half of this year, down 1.16% year-on-year.

The Bank of England cut interest rate, benefiting base metals.

PRECIOUS METAL:

The year 2016 has already topped the previous record for the amount of money flowing into exchange-traded products featuring precious metals, Barclays said Thursday.

The bank issued research on all commodity investments through the first seven months of the year, reporting combined inflows of nearly $8 billion during the last two months, taking year-to-date inflows to $50.8 billion, the strongest January-July tally since 2009. This, along with price appreciation, have pushed assets under management for all commodities to a 13-month high of $235 billion, well up from $161 billion at the end of 2015, Barclays said.

Gold has been one of the best performing assets this year, making gains of almost 29% year to date, but it is also attractive as a global currency, according to one commodity analyst.

Tuesday, in an interview with Bloomberg News, Francisco Blanch, head of global commodity research at Bank of America Merrill Lynch, said that not only does gold make an attractive investment when one-quarter of global bonds are offering negative yields, but its carry costs are even lower compared to some currencies.

Data on Wednesday from payrolls processor ADP showing the U.S. private sector added 179,000 jobs in July suggested that the labor market continues to improve. But the data did not significantly alter expectations that the Fed will hold off raising interest rates until next year. Friday's release of the government's July jobs report will provide a broader picture of the labor market.

 CAPITALSTARS