The Copper Journal Monthly Reports End of month reports / charts
- August 2019
- John Gross
Don’t worry, you’re not alone.
Just about everywhere we look, contradictions abound. While the global economy slows, and expectations of a recession become a near foregone conclusion, equity markets continue rising.
Some members of the Federal Reserve think interest rates should remain steady, while others see a need for further cuts.
Global trade talks that were scheduled for September were cancelled, sending markets into a tailspin, but it is now expected they will be held in October.
Recent economic statistics also reflect incongruities. The Institute For Supply Management reported that its Manufacturing Index fell below the critical ‘50’ level to 49.1 during August, representing the lowest reading since January 2016. Conversely, the ISM Non-Manufacturing Index rose to a 3 month high of 56.4 last month.
August also saw precious metals continue rising – despite a stronger dollar, as the flight to safety intensified.
But most nonferrous metals fell last month, ostensibly because of the stronger dollar, coupled with fears of slower global growth.
Copper was hard hit again, as some 45,000 metric tonnes of metal went into warehouse during August, bringing the total held to a 12 month high of 521,000 mt, and sending the price to a 27 month low of $2.57.
At this point, there is little on the horizon to suggest we will have any more clarity any time soon.
John E Gross