World Gold CounCil released demand stats for Q1
Transcription
World Gold CounCil released demand stats for Q1
Metals are an incredibly diverse and ever-changing investment option, with different values that are often subject to economic shifts, political activity and supply and demand dynamics. Metals possess incredibly unique chemical properties that make them suited to very specific applications. This iteration of the Davenport Quarter Reporter focuses on four stories from the last quarter that reinforce the global demand for the metals industry. Palladium Shone as Environmental Rules Boosted Demand Mid-May proved to be a significant period for palladium as analysts forecast a brighter outlook for the metal, following tighter environmental regulations and robust auto sales in the US and China. World Gold Council Released Demand Stats for Q1 Market development organisation, the World Gold Council (WGC) published its most recent Gold Demand Trends report in mid-May. The analysis revealed that total demand for the metal hit 1,079 tonnes in the first quarter, marking a 1% decrease from a year earlier. Although demand was seen to dip 11 tonnes, appetite could rally in the April-June period overall, particularly in India around the festival of Akshaya Tritiya. According to reports, Q2 could end on a higher note for India – the world’s second largest consumer of gold – after China overtook the nation by nearly 100 tonnes in Q1 to claim the number one spot. Although India’s gold demand rose 15% in Q1 to reach 191.7 tonnes, Chinese demand hit around 272.9 tonnes despite a 7% year-on-year decline. Combined the two nations accounted for 54% of total global consumer demand for gold in the first quarter. Aluminium China 2015 to Highlight the Future of Green Cars Asia’s leading event on the aluminium supply chain is due to highlight the metal’s role in technological and environmental developments later this year. Set to take place in July, Aluminium China 2015 will showcase the increasingly more prominent role aluminium plays in the auto sector. As manufacturers strive to improve energy efficiency and turn to greener vehicles, the metal is being used for a variety of automotive products, ranging from engine casings and chassis to wheels, doors and connectors. As China aims to implement a national strategy designed to reduce average passenger fuel consumption by a third before 2020, more manufacturers are launching electric and hybrid models. Visitors to the event will not only be able to gain insights on aluminium’s role in the auto sector, but they will be able to witness aluminium forging, stamping and extrusion products, in addition to disruptive technology set to impact the industry. Palladium is predominantly used in the manufacturing of catalytic converters, which reduce the emissions and pollutants released by exhaust fumes. This application means the metal is often subject to change according to the health of the auto market and efforts to improve environmental standards. Last year the palladium market was recorded to be in a deficit, with shortfalls expected this year, in 2016 and through to 2017, according to forecasts from Australia & New Zealand Banking Group Ltd. At the time of the report, the metal had already risen 8% after a low in March. However, one analyst with Capital Economics in London appeared optimistic for the metal by stating, “Fundamentally, palladium is our favourite metal.” KGHM Regained Position as Top Silver Producer At the beginning of May, Polandbased mining company KGHM reclaimed the position of the top silver producer in the world. Ranked by a Thomson Reuters report, the firm was said to produce 1,256 tons of the white, lustrous metal in 2014, exceeding its previous year’s total by 7%. The World Silver Survey is one of the leading annual reports and the only one to rank all producers of the metal. The comparison takes into account the silver market’s key indicators, including economic analysis, financial figures published by the firms and interviews with company representatives. Herbert Wirth, President and CEO of KGHM said of the result; “It took us one year to regain our leadership position in the silver market. In 2013, we were ranked as third silver producer. In the previous year, however, we raised production by 7% due to optimum ore processing and smelting activities.”