Prices of most industrial metals rose on Monday as worries over a global banking crisis eased, with copper further supported by improving consumption in China. Gold and silver prices are up in early U.S. trading Monday, with gold notching a 12-month high of $2,014.90, basis April Comex futures, and silver a six-week high. Safe-haven demand for the metals is featured amid a still shaky general marketplace amid the U.S. and European banking crisis.
US Stabilizing Banking Crisis
In the latest effort by US policymakers to address the straining global financial system, the Federal Reserve and five other central banks announced coordinated actions on Sunday to boost liquidity in US dollar swap arrangements. The US central bank has typically provided access to such arrangements at times when there’s a squeeze on the availability of dollars. That can arise because banks outside the US typically have obligations that are denominated in US dollars, and in times of financial strain have less access to dollar funding.
The quick action by the US seems to have been prompted from learnings during the 2008 financial crisis.
“Central banks and authorities were right to take swift action before Asian markets opened,” said Hirofumi Suzuki, chief FX strategist at Sumitomo Mitsui Banking Corp. “Still, those actions alone can’t erase every concern from markets. A big key event is obviously the Fed meeting this week. Market players will be watching how current destabilized financial markets will affect the pace of rate hikes.”
Financial Post Reporting Rising Metals Prices
The Financial Post reported that as a result of the calming of banking fears, metals prices have rose in recent hours.
Yangshan copper premium rose to $50 a tonne on Friday, its highest since December last year, indicating improving appetite for imported copper into China, the world’s biggest consumer of the metal.
SHFE copper inventories fell for the third straight week to 182,341 tonnes, their lowest since Jan. 20.
Meanwhile, China’s aluminum imports in the first two months of 2023 rose 11.3% year-on-year to 374,321 tonnes, as buyers anticipated improving demand for the metal following the country’s reopening from COVID-19 restrictions.
SHFE aluminum increased 0.4% to 18,240 yuan a tonne, nickel was up 0.65% at 177,240 yuan a tonne, zinc advanced 1.3% to 22,570 yuan a tonne, tin jumped 2.7% to 185,900 yuan a tonne and lead edged up 0.2% at 15,360 yuan a tonne.
LME zinc increased 0.4% to $2,905 a tonne, lead was up 0.1% at $2,091.50 a tonne and tin increased 1.2% to $22,780 a tonne, while aluminum fell 0.2% to $2,270 a tonne.
Emergent Metals Leading the Way in Asset Incubation
Emergent Metals Corp. is a gold, silver, and base metal exploration company focused on looking for asset acquisitions in a buyer’s market, adding value to the acquisitions through computerization and re-modeling of historic exploration data, and positioning them for asset divestitures through sale, joint venture, option, royalty, and other business transactions to advance our projects and create value for our shareholders.
On January 26, Emergent Metals announced that it has discovered a new copper target at its New York Canyon Property, Nevada. The discovery, made by Kennecott Exploration Company (“KEX”), a subsidiary of Rio Tinto plc (NYSE:RIO), is located on Emergent’s north block (“North Block”) of claims. The company believes that this new target has the potential to add significant value to its portfolio, and the company is planning to undertake further exploration activities to better understand the nature and scale of the deposit.
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