SHANGHAI, Jun. 28 (SMM) –
According to the State Council executive meeting held June 26, China’s economic conditions have remained stable this year, the effective measures should be developed to promote growth and boost domestic demand.
The US Q1 GDP growth was revised lower to 1.8% from a preliminary 2.4%, missing forecast, but was higher than the 0.4% growth recorded for the previous quarter. The US economy has been growing for a 15th consecutive month.
LME base metals prices continued falling June 26 but with declines narrowing, but precious metals staged sharper declines to hit three-year low. International gold prices presented the largest decline in 45 years, while SHFE silver fell to a record low.
LME three-month copper contract price closed 0.48% lower at USD 6,735/mt on June 26. The prices tumbled nearly 4% last week. LME three-month aluminum prices closed 0.28% lower at USD 1,773/mt, while LME zinc ended down 0.31% at USD 1,840/mt. LME lead fell 0.96% to end at USD 2,030/mt.
Spot gold in London and COMEX gold fell 4% and 3.55% respectively on June 26 to USD 1,221.94/oz and USD 1,221/oz. London spot silver prices fell 5.63% to USD 18.44/oz.
Investment banks including Goldman Sachs and Morgan Stanley cut forecast for gold prices sharply following the price slumps.
Operating rate at China’s lead smelters in China fell to some 55% given the excess supply, depressed consumption and falling lead prices, forcing some lead smelters to halt production
SMM survey revealed that operating rate at China’s primary lead smelters averaged 55.13% in May, down 2.51 percentage points from April’s 57.64%, since an increasing number of smelters cut production for maintenance during the month, cutting lead output by 5,000 mt.
Yuguang Gold & Lead also halted one lead production on June 16 for the 42-day maintenance, with lead output expected to fall 250 mt/day and sulfuric acid output to fall 350 mt/day.