Metals in the Americas:The Weekly Extract

2019-10-09 05:52 来源:未知

The S&P 500 slipped 1% WoW to 2,441 whereas the S&P 500 M&Mdeclined 2% WoW to 106. However, most commodities rose WoW.

WEEKLY EXTRACT

    Aluminum surged 8%, as China’s Shandong province, the largestaluminum producing region, ordered closure of 3.2mt of illegal smeltingcapacity. Coking coal (+4% WoW) and iron ore (+1%) continued toincrease, underpinned by strong Chinese steel prices. Though, China Iron& Steel Association warned that current steel price rally is not supportedby fundamentals and appears to be driven by an exaggeration of theimpact of capacity cuts expected later in the year. Gold and silver rose 2%each, on heightened geo-political tensions between US and North Korea.

    The S&P 500remained flat WoW at 2,425along with the S&P 500M&M at98(-1% WoW). Coking coal rose 3% WoW on improved Chinese marketsentiment as domestic miners looked to cut production. Iron ore and USHRC prices rose 2% and 1%, respectively, followed by aluminum (+1%).Nickel declined 4% from increased supply concerns from Indonesia andthe Philippines. Gold and silver fell 3% and 4%, respectively as US jobsdata beat expectations and indicated a strong labor market, forming astronger case for another interest rate hike.

    PRICE PERFORMANCE

    PRICE PERFORMANCE

    Industrial Metals equities declined 3% WoW despite higher underlyingcommodity prices. China’s July trade data came in below expectations,with exports up 7.2% YoY (vs +10.9% consensus, +11.3% in June) andimports rising 11.0% (16.6%, 17.2%). Steel & Service Centers equities fell3% even though US HRC price remained flat. Aluminum & SpecialtyMetals equities corrected 2% in contrast to aluminum price (+8%).

    Aluminum & Specialty Metal equities rose 2% WoW likely on underlyingaluminum (+1%) and continued demand for stainless products. PreciousMetal equities declined 3% mostly after US jobs data was released. Steel &Service Center equities declined marginally (-1%) awaiting a pendingSection 232outcome. Industrial Metal equities rose 1% following amajority of underlying commodities higher.

    Precious Metals rose 3% on b-t-e results and gain in gold/silver prices.

    AK Steel declined 9% WoW, the most within our coverage, following itsannouncement of $360m acquisition of Precision Partners. Coeur (-9%WoW) fell the most within Precious Metal equities after releasing 2Q17production results, while silver prices reached a 15-month low. SQM (+6%WoW) led the gains among Industrial Metals as reports emerged thatprivate equity firm, GSR, may invest in SQM. Within Aluminum andSpecialty Metals, Constellium (+6% WoW) increased the most, despitelower US and European automotive production data.

    Within Industrial Metals equities, First Quantum declined 8% WoW, withongoing risks in Zambia and a decision to suspend operations atRavensthorpe mine in Western Australia. Among Precious Metals, SSRMining rose 12% on strong quarterly results and improved outlook for2017. Within Steel & SC equities, AK Steel declined 6%. CenturyAluminum (+8%) was the only Aluminum & Specialty equity to post aWoW gain, in tandem with the aluminum price.

    RECENT RESEARCH

    RECENT RESEARCH

    AK Steel Alert - Precision Partners acquisition call wrap: Gearing up for 3GSolutions

    Wheaton Precious Metals Alert – 2Q17 result : Dividend increased, SanDimas issues on-goingn SSR Mining Alert - 2Q17 result : EBITDA above forecasts; 2017 guidanceimprovedUPCOMING EVENTS

    Aluminum tracker: Smelter margins pressured as alumina bounces backn Steel tracker: US HRC rises; Await clarity on Section 232

    SQM Investor Day, New York – September 7th

    UPCOMING EVENTS

    Metals & Mining Conference, London – September 13th

    SQM Investor Day – September 7th.

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