On Nov. 25, SMM #1 lead price was offered at 19,850-20,000 yuan per tonne, up 3,525 yuan from November 1 and surging 21.49 per cent in a single month, also hitting the highest level since April 28, 2008.Surging lead prices have added big pressures to Chinese battery producers, SMM survey finds.
“Many domestic battery producers now plan to cut or even suspend production in response to the surge in production costs,” SMM lead analyst says.According to SMM survey, domestic battery producers began raising battery prices due to rising costs on November 15 when spot lead climbed above 18,000 yuan per tonne in China’s market, and some producers even stopped receiving new orders.
Gold traders will be watching next week to see if the recent slide in gold prices sparks increased physical demand in key Asian gold-buying nations.There are signs that this may already be picking up, traders and analysts say. Otherwise, they add, the market’ s main focus will remain on U.S. economic data and Federal Reserve comments for clues on what Fed policymakers will do with U.S. interest rates.
Comex December gold early Friday fell as far as $1,170.30 an ounce, its weakest level since February. Just before 12:30 p.m. EST, the contract was down by 2.4% for the week to $1,179.80.
Prime Minister Narendra Modi’s move to ban 500 and 1,000 rupee notes caught the country by surprise, with many Indians now looking to liquidate their stockpiles of cash. Internet chatter is now a flurry, with some wondering whether the government’s next step will be to ban gold imports and prevent Indians from cashing in “black” money.
“The Indian financial market is in chaos right now – India, like the U.S. and Germany have a lot of people who produce newsletters on the internet that are not necessarily based on fact but rather contain extreme theories and rumors.” Jeff Christian, Managing Director, CPM Group
Nigam Arora, chief investment officer of the Arora Report, said he is taking the potential ban seriously. “We took this rumor seriously and incorporated it in our models that gave the sell signal in gold right after the U. S. presidential election,” he wrote in a MarketWatch commentary.He warned that much of the media in the Western world is still oblivious to this major potential development ahead.
“The Indian Bullion & Jewellers Association has informed its members that they are hearing from certain circles of a potential ban on gold imports,” Arora said, adding that social media in Asia is “abuzz with these rumors.”
- US oil rig count rose by 3 to 474 this week.
- OPEC’s Latest Headache: Russian Reluctance to Cut Oil Output.
- Saudi Arabia and its allies privately expected Moscow would eventually join a cut if the OPEC delivered its own reduction.
- Russia already said to reap USD 6 billion from OEPC deal talks.
- Apart from the dollar weakness, the other dominating theme so far in the markets has been the weakness in the oil prices. What looked like a smooth process in the OPEC discussions seems to have hit some roadblocks with Russia and Saudi Arabia at loggerheads once again and now confusion reigns. No one is sure on what is going on and there are going to be more meetings during the course of the day and more reports as well. This confusion and lack of clarity has pushed down oil prices and it sits just above $45 and looks pretty weak.
- The day and the week should be pretty straightforward as far as oil prices are concerned. The oil prices are likely to swing this way and that depending on the headlines from the various OPEC discussions and this should culminate on Nov 30 when the OPEC meetings are going to be held and it will be then or never. So, far the reports over the weekend have not been encouraging but as we have seen, 2 days can be a very long time in the markets.
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