This morning in metals news, the LME launched a bid to acquire a piece of the over-the-counter gold market, Chilean miners are set to go on strike and the Liberty House group has purchased two more steel mills from Indian firm Tata.
LME Launches Gold Contract
The LME’s new LMEprecious spot contract saw more than two tons of gold traded in its first day, Reuters reported.
According to Reuters, the suite of gold and silver contracts was formed via a group of backers, including big banks. The contracts launched at 0000 GMT Monday.
By the close of business Monday, approximately $91.3 million in gold had been traded on the LMEprecious spot contract, according to exchange data cited by Reuters.
“LMEprecious has been developed in response to market demand and in close consultation with key precious metals stakeholders,” the LMEprecious page on LME’s website reads. “Offering daily and monthly futures for both gold and silver, LMEprecious delivers greater choice for market participants, modernising the gold and silver markets to better reflect the needs of global players in precious metals markets.”
Strikes Pave Way for Higher Prices
With Chilean miners’ recent vote to go on strike, the price of copper will get a boost upward.
According to Reuters, a buildup of inventories since late June came to a stop and miners voted to strike on Tuesday, both factors which contributed to a rise in the price of copper.
LME copper was up 0.4% to $5,845.50, according to the report. However, an expected slowdown in Chinese economic growth and the strengthening of the U.S. dollar are factors behind why many analysts think the copper price will fall.
“Our forecasts suggest that most prices will fall from here,” Caroline Bain, a Capital Economics analyst, told Reuters.
Tata Deals Hartlepool Steel Mills
The Liberty House group purchased two of Indian company Tata’s steel mills, according to a report in The Telegraph.
According to the report, Liberty House signed a provisional deal to purchase the mills, located in Hartlepool, England, which produce heavy-duty 42-inch and 84-inch steel pipes used in the oil and gas industries.
According to the report, Tata will retain a third Hartlepool mill, where 270 are employed and make 20-inch tubes.
Last March, Liberty House bought two Scottish steel mills Tata was preparing to shutter.