Metals in the Americas:The Weekly Extract

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.

    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.

    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%).

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

    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

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

    SQM Investor Day, New York – September 7th