China Aluminum Market to Record Small Surplus in 2017 - 25 Apr 2017

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Gold Down amid Big Risk-On Trade after French Election.
Gold prices were ending the U.S. day session lower but up from the daily low Monday, as safe-haven assets were hit hard by rallying risk assets that include world stock markets and the Euro currency. June Comex gold was last down $12.90 an ounce at $1,276.20. May Comex silver was last down $0.009 at $17.865 an ounce.The first round of the French presidential elections held Sunday showed the nationalist candidate Marine LePen garner less support than expected and dealing the so-called Euro skeptics another blow. LePen will be in a runoff election May 7 against centrist candidate, Emmanuel Macron. Macron is projected by early polls to be the soild winner of the May 7 vote. European market watchers had been very nervous as the French elections approached and polls showed tight races. A few weeks ago the Dutch elections showed the nationalist candidate go down in defeat.

Vale S.A. Posts Copper Output down 2.6% YoY in Q1 2017.
Copper output at Vale S.A. was 109,000 tonnes (including output at joint venture enterprises Lubambe) in the first quarter of 2017, down 11% MoM and 2.6% YoY, reported by Vale S.A.. And Sudbury smelter underperformed. Plunging output at bonanza and unscheduled maintenance were attributed to two main factors behind the decline.

China Aluminum Market to Record Small Surplus in 2017.
Aluminum output in China will grow 10.3% in 2017 compared with 2016, the China Non-Ferrous Metals Industry Association (CNIA) predicted. The CNIA sees a 230,000 tonne surplus in China aluminum market this year while expecting global aluminum market to remain in deficit.  

Oil edges up after 6 days of straight losses.
Oil prices inched up on Monday but markets remain under pressure following six consecutive sessions of losses as traders lose confidence that pledged output cuts by major producers will rein in oversupply in a world awash with fuel.
Despite Tuesday’s small price rises, overall market sentiment has turned bearish, with Brent down nearly 10 percent since the end of December despite an effort led by the Organization of the Petroleum Exporting Countries (OPEC) and Russia to cut output by 1.8 million barrels per day (bpd) in the first half of 2017 in order to tighten the market. Is evident that crude markets are still struggling to clear (oversupply)," U.S. bank JPMorgan said in its latest weekly oil market update to clients. "There is further shortterm downside to prices," JPMorgan said, adding that in order to reduce the ongoing supply overhang, OPEC "will be forced to renew, and possibly deepen the agreement if they wish to keep prices much above $50 per barrel."

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Zinc Inventories Fall in China Major Markets -24 Apr 2017

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Gold climbs quietly as investors wary ahead of French vote. 
Gold prices rose slightly on Friday as investors awaited the first-round of voting in the presidential French election at the weekend and possible announcements about tax changes in the United States. "The big news over the weekend will be the French election and the market will be to an extent on hold ahead of that," said Mitsubishi commodities analyst Jonathan Butler. There was potential for safe-haven buying of gold after France said security forces were fully mobilized for the weekend vote after an Islamist militant killed a policeman Thursday night. The near term, if the geopolitical tensions intensify, there is a chance that gold prices will reach $1,300 or more," OCBC analyst Barnabas Gan said. A move in gold above $1,290/91 would be significant as it would break above a downtrend that has been in place since gold touched an all-time high of $1,920.30 in 2011, Butler said.  

Zinc Inventories Fall in China Major Markets, SMM Reports.  
Combined zinc inventories in Shanghai, Tianjin and Guangdong decreased 29,100 to 200,200 tonnes last week, SMM data show. Fewer arriving shipments combined with steady downstream demand caused inventories to fall further, SMM said. Total inventories in the three regions are expected to continue falling this week now that smelters have yet to restart from maintenance.  Zinc prices are expected to stay range-bound this week, SMM foresees. LME zinc may consolidate in the range of $2,520-2,650 per tonne this week, SMM predicts. SHFE May zinc will move between 21,000-22,300 yuan per tonne. Spot trading inventories fell to a low recently. However,fundamentals, in a long-term point of view, will weaken, SMM said. In this scenario, zinc price will resist both increases and declines.  

Oil recovers some lost ground, but market under pressure.  
Oil prices recovered some ground on Monday following last week's big losses, driven by expectations that OPEC will extend a pledge to cut output to cover all of 2017, although a relentless rise in U.S. drilling capped gains. Oil prices fell steeply last week on the back of stubbornly high crude supplies, despite a pledge by the Organization of the Petroleum Exporting Countries (OPEC) and some other producers to cut production by almost 1.8 million barrels per day (bpd) for six months from Jan. 1 to support the market. drillers added oil rigs for a 14th week in a row, to 688 rigs, extending an 11-month recovery that is expected to boost U.S. shale production in May by the biggest monthly increase in more than two years.  Iran's crude oil exports are set to hit a 14-month low in May, suggesting the country is struggling to raise exports after clearing out stocks stored on tankers.  

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Oil prices set for biggest weekly drop in a month - 21 Apr 2017

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Yukon Gearing Up For another Gold Rush as Majors Stake Their Claims.
More than 100 years after the original gold rush that put the Yukon on the map, Canada’s western territory is gearing up for what some are expecting will be another important era in the region’s gold production. It has been almost a year since Goldcorp stepped into the Yukon, purchasing Kaminak Gold for more than $500 million. Since then two other majors have staked a claim in the territory in December. Agnico Eagle invested more than $14.5 million for a 20% stake in White Gold Corp., which has one of the largest exploration land packages in the Yukon. Finally, last month Newmont Mining announced it would spend $39.5 million to explore and develop Gold strike’s Plateau property.According to Yukon mining executives, the growing interest from major mining companies has created renewed excitement to develop the region’s resource and many of them are capitalizing on this newfound interest.

Chalco Hikes Aluminum Prices Sharply in Major Markets on Apr. 21.
China Aluminum International Trading Co. (Chalco Trading) raised aluminum prices it offered in major markets notably today after big cuts yesterday, it said on its WeChat.              

Oil prices set for biggest weekly drop in a month.
Oil traded steady on Friday, though it was set for its biggest weekly drop in about a month over doubts that an OPEC-led production cut will restore balance to a market that has been dogged by oversupply for more than two years. Reuters' technical analyst Wang Tao said that WTI had support just above $50 per barrel, while Brent had support around $52.55. stable prices on Friday followed a more-than-3.5 percent fall in both benchmarks earlier this week as doubts emerged over the effect of an effort led by the OPEC to cut production by almost 1.8 million barrels per day (bpd) during the first half of the year.

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Oil prices claw back ground after sharp drop, buoyed by US crude stock dip - 20 Apr 2017

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Gold Down on Profit Taking, Bearish Outside Market Forces. 
Gold prices were ending the U.S. day session lower Wednesday. Risk aversion in the world marketplace has receded a bit at mid-week and that’s a negative for the safe-haven metal. Generally higher world stock markets Wednesday also worked against the gold market. Some chart consolidation and profittaking from the shorter-term futures traders were featured in gold and silver markets after both scored five-month highs earlier this week. Still on the front burner of the world marketplace are geopolitical concerns regarding the U.S. and North Korea stand-off, and U.S.-Russia relations. U.K. Prime Minister Theresa May surprised the marketplace on Monday by calling for snap general elections in June. The first round of the French presidential elections will be held Sunday. The second round will be on May 7. European market watchers are getting more nervous as the French elections approach and polls show tight races. This uncertainty remains an underlying bullish element for the safe-haven gold market. 

Southern Copper Workers Ends Strike in Peru. 
Southern Copper Corporation’s workers ended the strike at Peru-based mine on Wednesday which lasted for 10 days, wenhua.com reported. The company said its output was not significantly affected by the strike. Labor Union SecretaryGeneral Campos said the company and workers will participate in a negotiation with Labor Ministry on Thursday.  

Global Zinc Deficit Alleviates to 177,000 tons in First Two Months of 2017 World Bureau of Metal Statistics (WBMS) data show global zinc market was in 177,000 tonnes of deficit during January and February 2017, compared to 258,000 tonnes of deficit in 2016. Global refined zinc output added 6.0% year-on-year in the first two months of the year. Consumption was up 7%, with 87,000 tonnes from Japan, up 16% year-on-year.  

Oil prices claw back ground after sharp drop, buoyed by US crude stock dip.  
Crude Oil prices regained some ground on Thursday after steep losses the previous day, with a slight drop in U.S. crude inventories stoking hopes that a push to rein in global oversupply could be gathering at least some momentum. Price increases came after both crude benchmarks fell over 3.5 percent the previous day following a report of surging gasoline inventories as well as another rise in U.S. crude oil production to 9.25 million barrels per day (bpd), up almost 10 percent since mid-2016.  

"The U.S. has now entered a seasonal period in which stockpiles are reduced during the summer driving season, hence the unexpected miss weighed heavily on prices," James Wood, investment analyst with Rivkin Securities, said in a note. U.S. gasoline stocks posted a counter-seasonal build of 1.5 million barrels, despite heavier refining activity. 

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Gold nears 5-month top on weak dollar, geopolitical tensions - 19 Apr 2017

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Gold nears 5-month top on weak dollar, geopolitical tensions.
Gold turned higher on Tuesday, nearing the prior session's five-month peak, bolstered by a softer dollar, lower U.S. Treasury yields, North Korea tensions and nervousness ahead of the French presidential election. May's call added to a lengthening list of uncertainties for investors already on edge over geopolitical tensions that also include Syria, Afghanistan, Turkey and U.S. relations with Russia and China. Risk is skewed to the downside but underlying support is there with the focus on political uncertainties.

In France, investors remained nervous ahead of the first round of the country's presidential election this Sunday, even though an opinion poll put centrist Emmanuel Macron first, just ahead of far-right, anti-euro candidate Marine Le Pen. "The Fed is still probably on course to hike two more times this year," McKay said.

Codelco Ceases Beneficiation Plant at Salvador Copper Mine.
Codelco suspended its beneficiation plant at the Salvador copper mine after one senior executive died in an accident Tuesday, wenhua.com reported. The company said they are now investigating the accident which happened in the floatation area of the beneficiation plant. The Salvador copper mine produced 60,000 tonnes of copper in 2016, the lowest of all the company’s copper mines. It did not disclose when to restart the plant. SMM sees limited effect on copper market from this due to low output at the mine.  

Southern Copper Corporation’s labor union said they will keep on fighting for salary at the railway line through which the company ships ore from the copper mine in Peru, according to FXStreet. Labor union official Efrain Centeno said about 3,000 miners took the ILO railway line, which has been suspended from the strike beginning on Monday, and they will keep on holding the railway line unless the company meets their demand. A negotiation between the company and the labor union will take place in Lima on Thursday.

Oil prices dip on bloated U.S. market, mixed Saudi signals.
Crude prices dipped on Wednesday as bloated U.S. supplies weighed on markets while a fall in Saudi crude exports was offset by rising production in the country. Although crude inventories fell by 840,000 barrels in the week to April 14 to 531.6 million barrels, still close to record highs, gasoline stocks rose by 1.4 million barrels as refinery crude oil runs increased by 334,000 bpd, the API said. Outside the United States, a fall in Saudi output as part of its planned production cuts for the first half of this year lent the market some support.

The Organization of the Petroleum Exporting Countries (OPEC), of which Saudi Arabia is the de-facto leader, together with other producers like Russia have agreed to cut output by almost 1.8 million barrels per day (bpd) during the first half of the year to rein in a global fuel supply overhang and prop up prices.

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What U.S. Tax Reform Delay Could Mean For Gold - 18 Apr 2017

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GOLD: What U.S. Tax Reform Delay Could Mean For Gold
Treasury Secretary Steven Mnuchin said that President Donald Trump's tax reform could be delayed and not make it through Congress before August due to setbacks with the healthcare bill, the Financial Times recently reported.

What U.S. Tax Reform Delay Could Mean For GoldAnd, according to one analyst interviewed by Kitco News, a significant delay in carrying out Trump's tax reform promise could boost gold, which is known for its safe-haven appeal.

Mnuchin made the comments in an interview published by the Financial Times on Monday, describing the August deadline for the massive tax reform bill as “highly aggressive [and] not realistic at this point.”

“It is fair to say it is probably delayed a bit because of the healthcare,” he said. Trump’s administration will still try to pass an overhaul of the tax code in 2017, Mnuchin added.
To BMO Capital Markets, a major delay could help gold, but the gains would be limited.
“Confirmation from the Trump administration that tax reforms will be delayed could provide a slight bump to gold prices (reflecting a loss of confidence in the U.S. economy over the near term),” Sarah Howcroft, economist at BMO Capital Markets, told Kitco News in a phone interview on Monday afternoon.

COPPER: Capstone Mining reported production result in the first quarter of 2017 and copper output totaled 20,900 tonnes, including 11,300 tonnes at Pinto Valley mine.

“The flood in late January slashed capacity at Pinto Valley mine”, the company said.However, Capstone Mining holds output anticipation at 94,000 tonnes unchanged in 2017.

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Gold heads for best week since June on Korea, Mid East jitters - 17 Apr 2017


Gold heads for best week since June on Korea, Mid East jitters.
Gold eased back from the previous day's five-month high on Friday, but stayed on track for its strongest week since June as concerns over North Korea and the Middle East sent investors scurrying for the safety of bullion and the dollar wilted. Market liquidity was thin due to Good Friday and Passover holiday observances around the world. The market for U.S. Treasuries finished trading early on Thursday, and will be closed on Friday.Spot gold was $1,284.81 an ounce at 1435 GMT, down 0.2 percent. Prices peaked on Tuesday at $1,288.64 an ounce, their highest since early November. "The further deterioration in the U.S. relationship with Russia and North Korea this week has supported the prices of precious metals," Capital Economics said in a weekly note. "A weaker dollar, in light of President Trump's comments about the risk to the U.S. economy from a rise in the dollar, has also helped to boost the price of gold."

Peru’s Copper Output Sees Slowest Growth in 2 Years in February.
Peru Energy & Mines Ministry data show the country’s copper output increased 5.42% year-on-year to 178,283 tonnes in February 2017, wenhua.com reported. The country’s mining industry only grew 47% in February, compared to 33.59% in the same period of last year.Extraordinary rainstorm took a toll on the country’s road and other facilities this year. The country’s copper production added 38.4% year-on-year to 2.35 million metric tonnes in 2016.  Combined zinc inventories in Shanghai, Tianjin and Guangdong decreased 30,200 to 229,300 tonnes last week, SMM data show. Shanghai and Guangdong witnessed fewer arriving shipments and big growth in outward shipments. Inventories in Tianjin only declined slightly. Production at local downstream manufacturers was restricted by environmental protection, SMM said.

Oil down slightly in subdued trade after failed North Korean missile test.
Crude oil futures fell slightly in quiet trading on Monday, after a three-day Easter break, as investors digested a third consecutive weekly gain in prices along with North Korea's failed missile launch on Sunday.The subdued start to this week came as markets braced for more geopolitical tensions over North Korea, after its attempted launch on Sunday of a ballistic missile failed as the projectile blew up almost immediately. United States is working with allies and China on responses to the failed test, U.S. President Donald Trump's national security adviser said on Sunday. Crude traders and investors in Asia also had their first chance to assess a 13th consecutive increase in the rig count by drillers of U.S. shale oil. Energy services firm Baker Hughes said on Thursday that drillers added 11 oil rigs in the week to April 13, bringing the total count up to 683.

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