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The Monthly MMI®:


Profits Taken
January 2017
MMI | © MetalMinerTM. All rights reserved. 2 of 16

Table of Contents
1. Introduction/Overview/Executive Commentary on This Month’s MMIs

2. Aluminum MMI® - January 2017

3. Copper MMI® - January 2017

4. Stainless/Nickel MMI® - January 2017

5. Raw Steels MMI® - January 2017

6. Rare Earths MMI® - January 2017

7. Automotive MMI® - January 2017

8. Construction MMI® - January 2017

9. Renewables MMI® - January 2017

10. GOES (Grain-Oriented Electrical Steel) MMI® - January 2017

11. Global Precious Metals MMI® - January 2017

12. A Note on MetalMiner's Price Forecasting Capability


MMI | © MetalMinerTM. All rights reserved. 3 of 16

Introduction and Overview


Thank you for taking a look at a very exciting offering we launched in January 2012 here at
MetalMiner. The genesis behind creating a range of indexes began with a phone call from one
of our readers, a very large oil and services firm. We spoke with a commodity analyst who
called to ask a very simple question: “Do you know of any indexes besides the BLS indexes
that can help me track what is happening for a range of metal products that I buy?”

We asked a set of follow-up questions – what metals do you buy, and what do you perceive as
the limitations of existing BLS data?

The company buys a range of steel, stainless steel and nickel alloy high-pressure semi-
finished products. The BLS data typically tracks only one single product/grade and, more
importantly, bears little resemblance to what the company had paid for the range of products.
The commodity analyst asked if we could do better.

We couldn’t promise a resounding “Yes” to that question yet (you’ll need to be the judge), but
we said we’d at least take a shot. The 10 MMI reports that appear in this document represent
our best initial attempt to devise a range of indexes that would provide value in the market
using the following guidelines as the basis:

1. Each index should represent a basket of metals or raw materials (depending on the
category) that impact the cost structure for that particular metal market (e.g. coking
coal, scrap, and iron ore for steel prices)
2. The inputs should reflect the global market for that commodity. BLS indexes by
default only include US data, but that may/may not be representative of underlying
global price trends
3. Metal prices often depend upon the underlying demand for various industries (e.g.
steel prices relate to construction industry activity), hence the addition of several key
industry verticals that impact multiple metal markets

Readers can use these MMIs for a range of activities:

1. To better understand underlying month-to-month metal price trends across industries


as well as within specific metal markets
2. To use as an economic indicator, much like the ISM PMI (Purchasing Manager’s
Index) monthly numbers or the BLS PPIs (Producer Price Index)
3. To use for forecasting and predictive analytics
4. To better understand which commodities have the greatest volatility

*Please Note: Exact prices for ALL metals and raw materials in all categories are
available to MetalMiner IndXSM subscribers. Log onto http://agmetalminer.com/metals-
price-index/ for more info!

Contact Us!

Email: info@agmetalminer.com
Phone: 773.525.9750
MMI | © MetalMinerTM. All rights reserved. 4 of 16

Executive Commentary on This Month’s MMIs


One-Year MMI Trends

MMI Index Value (Jan. 2012 baseline = 100)


100

90
Automotive
Aluminum
80 Global Precious Metals
Construction
70 Copper
Raw Steels
60 Stainless Steel

50 Renewables

40

30

20
Rare Earths
10

0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017
© MetalMinerTM. All rights reserved.

Most of our sub-indexes were down this month, presumably because investors began taking
profits from the bullish metals markets that forged ahead in the last few months of 2016.

The Copper MMI fell nearly 3%, the Stainless MMI fell 3.25%, Raw Steels 3.1%, Aluminum
3.6%, and our biggest loser, the Global Precious Metals MMI was down 3.8%. Seeing a
pattern here? The losses were nearly identical across many of the markets.

The biggest winner this month was our Grain-Oriented Electrical Steel sub-index, which rose
3.2%. So, there were really no big price movements at all this month, with losses and gains
contained below 4% and a lot of flat and close-to-flat readings in between.

As our lead forecasting analyst, Raul de Frutos, wrote earlier this month, this is classic profit
taking and, really, an opportunity. You should always wait until momentum picks up again
when purchasing during price pullbacks, but there’s no reason, yet, to believe this is anything
but that, a price pullback.

Chinese demand is still driving the industrial metals complex toward higher prices and
there has been no reason, yet, to believe demand is faltering there. The same goes for the
U.S. dollar, which is poised for more interest rate increases this year. Optimism about U.S.
construction is still strong, too, bolstered by beliefs that President-elect Donald Trump will
unleash waves of fiscal spending on infrastructure which acted as a driver for copper prices to
punch through the $5,000 a metric ton mark on the London Metal Exchange late last year.

Demand for automobiles in both large economies is still in bull mode as well (see the
Automotive MMI for more). So, there is no reason to believe that the fundamental supply-
demand equation has changed for the metals we track. Continue to monitor the markets
and time your purchases around those pull backs. We look forward to informing your buying
decisions in the new year!

– Lisa Reisman, Executive Editor, MetalMiner


MMI | © MetalMinerTM. All rights reserved. 5 of 16
MMI | © MetalMinerTM. All rights reserved. 6 of 16

Aluminum MMI: Higher Pollution Brings Upside


100
Aluminum

Jan 2012 Baseline = 100


95
MMI®
90

85

80 December 2016
82
75
January
70 79
Down 3.6%
Index Value

65 February 2017
TBD
60
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

After surging in November, base metals fell across the board in December. That selling
pressure spread into aluminum markets, limiting any upside moves into the year-end. Prices
however didn’t give that much ground as aluminum’s fundamental story remains rather bullish.
The drops look a lot like classic profit-taking.

The auto industry is a key driver of aluminum demand. Auto sales in the U.S. and China (the
world’s biggest car market) finished the year on a strong note. Total vehicle sales in the U.S.
hit an 11-year high in December, aided by a fourth-quarter surge in demand that exceeded
expectations. In China, car sales hit an all-time record in November, up 17.1% year-on-year.

Although the figures came in strong, they should be taken with a pinch of salt. In the U.S., cars
were sold at an average 10% discount off the original asking price and that’s an incentive level
not seen since the beginning of the financial crisis. Similarly, in Q4, China announced a 50%
cut in its sales tax on automobiles with small engines. The tax cut was effective only until the
end of 2016 although some analysts expect China to extend the tax cut into next year.

Chinese Supply
One of the factors supporting higher aluminum prices has been that there were fewer smelter
restarts than expected smelter in China. In addition, we foresee limited additional restarts this
year due to rising production costs and pollution issues in China.

First, alumina seems headed for a supply deficit this year following Chinese curtailments.
Second, coal prices have surged since China reduced the hours for workers in its coal sector,
supposedly in a bid to control pollution and curtail its excess industrial capacity. Truth be
told, though, China really relaxed the mining day norm simply to control skyrocketing — some
would say artificially high — prices. However, we expect the maneuvers will keep China’s
supply of coal and aluminum in check this year.

CLICK HERE FOR THE FULL ARTICLE, MORE CHARTS AND ALL ALUMINUM PRICES.
The Aluminum MMI® collects and weights 12 global aluminum price points to provide a unique
view into aluminum price trends over a 30-day period.
MMI | © MetalMinerTM. All rights reserved. 7 of 16

Copper Down as Prices Digest Previous Gains


100
Copper

Jan 2012 Baseline = 100


95
MMI®
90

85

80
December 2016
75 71
70 January
69
65
Down 2.8%
Index Value

60 February 2017
TBD
55
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

Copper prices retraced in December. After the huge price run in November we were expecting
to see some profit taking as prices need to digest gains.

So far, the decline has been limited, with prices holding above $5,500/mt. Although copper
has lost some of its post-election gains, it still managed to end 2016 with decent yearly gains,
suggesting that sellers are not totally in control.

Copper’s Bullish Narrative


One of the key factors supporting copper prices is the earlier-than-expected supply deficit.
While most analysts were previously projecting the copper markets to move into deficit by the
end of the decade, many of them are now expecting a deficit as early as this year.

Another factor supporting copper prices is higher energy prices. Oil prices, the main
benchmark for energy prices, regained the $50/barrel level in December. Saudi Arabia said
it could be ready to cut output more than originally agreed upon at the latest Organization of
Petroleum Exporting Countries meeting. Non-OPEC countries, including Russia, also agreed
to an output cut north of 500,000 barrels a day. Energy is key in the metals industry. For
copper, energy can form almost 20% of the production costs.

President-elect Donald Trump’s proposed infrastructure investments are also positive for
copper prices. However, in our view, the key demand driver continues to be China, by far the
largest consumer of the red metal. China’s Caixin manufacturing purchasing managers’ index
rose to 51.9 in December from 50.9 in November and beat market expectations. That figure
marked the sixth straight month of growth and the strongest upturn in Chinese manufacturing
conditions since January 2013.

What Could Add Pressure to Copper Prices


The better-than-expected demand from China explains the ongoing strength in industrial metal
prices. However, there are concerns that the country’s demand growth rates could slow next
year.

CLICK HERE FOR THE FULL ARTICLE, MORE CHARTS AND ALL COPPER PRICES.
MMI | © MetalMinerTM. All rights reserved. 8 of 16

Stainless MMI Down, Price Volatility Ahead


100

Stainless

Jan 2012 Baseline = 100


95

90 MMI®
85

80

75 December 2016
62
70
January
65 60
60 Down 3.22%
Index Value

55 February 2017
TBD
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

Our Stainless MMI fell by two points in December after a mixed performance.

On the one side, surcharges for 304 and 316 stainless steel rose by 34% and 25%
respectively, as the chrome portion of the benchmark jumped month-on-month. The
mill-announced price increase, combined with higher surcharges, marks the largest
month-on-month increase seen in recent history.

On the other hand, nickel prices retraced in December on profit-taking across the
industrial metals complex. Nickel prices are now at attractive levels wherein we could
see investors pushing prices back up. That will depend on upcoming news that will
either boost them or send prices lower. One thing is for sure: volatility is guaranteed in
the weeks ahead.

Will Indonesia Relax its Export Ban?


(Editor's note: When this post originally was updated Indonesia had left the ban in effect.
The nation did, indeed, relax the ban, in the second week of January -Jeff Yoders)
Indonesia banned raw ore exports in 2014 to stop mineral wealth disappearing
overseas. The country was the top supplier of nickel ore to China for use in (nickel
pig-iron) stainless steel before the export ban. Indonesia hoped that the band would
encourage smelter investment, but investments haven’t exactly progressed as quickly
as expected.

In recent months, rumors are that the Indonesian government is relaxing its export
ban. In October, Luhut Pandjaitan, Indonesia’s then-acting mining minister, said
that Indonesia was reviewing its mining rules and that the country could could give
companies up to five more years to build smelters, and reopen exports of nickel ore
banned since 2014. However, soon after he was quoted saying Indonesia would “almost
definitely” keep in place a ban on nickel ore and bauxite exports. Which is it?

CLICK HERE FOR THE FULL ARTICLE, MORE CHARTS AND ALL GLOBAL
STAINLESS PRICES.
The Stainless MMI® collects and weights 14 global stainless steel and raw material price
points to provide a unique view into stainless steel price trends over a 30-day period.
MMI | © MetalMinerTM. All rights reserved. 9 of 16

Raw Steels MMI Mixed But Flat Products Surge


100

Raw Steels

Jan 2012 Baseline = 100


95
90 MMI®
85
80

75
December 2016
70
65
65 January
60 63
55 Down 3.1%
Index Value

50 February 2017
TBD
45
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndX - learn how to subscribe, click here!

Our Raw Steels MMI fell by two points, dragged down by a sharp drop in coking coal prices.
Chinese coking coal prices have been quite volatile over the past few months. But despite the
recent decline, prices are still well above last year’s levels.

On the bullish side, we saw a big increase in steel flat product prices, both domestically and
internationally.

Hot-rolled coil and cold-rolled coil prices in the U.S. have risen 13% and 17% respectively
since they hit bottom in mid-November.

Additionally, steel prices in China continued to climb in December. We already noted, that one
of the reasons to expect higher steel prices in the U.S. was rising Chinese prices. Prices in
China set the floor for international prices and the spread between U.S. and international steel
prices has narrowed so much in some steel product categories, like HRC, that there isn’t much
incentive for domestic steel buyers to look for import offers.

While prices in China have risen, Chinese steel exports have fallen, suggesting that the country
is absorbing more steel. In November, Chinese steel exports fell 16% compared to last year.
For the first eleven months, exports are down 1% compared to the corresponding period in
2015.

The real estate sector is among the world’s largest steel consumers. Total investment in real
estate in China during the first eleven months of 2016 rose 6.5% compared to the same period
of last year. China’s passenger car sales rose 17.2% compared to the same month last year
and it’s the seventh consecutive month were car sales rise in the double digits.

CLICK HERE FOR THE FULL ARTICLE, MORE CHARTS AND ALL RAW STEEL PRICES.

The Raw Steels MMI® collects and weights 13 global steel and raw material price points to
provide a unique view into global steel price trends over a 30-day period. For more information
on the Raw Steels MMI®, please drop us a note at: info@agmetalminer.com.
MMI | © MetalMinerTM. All rights reserved. 10 of 16

Rare Earths Demand Destruction Will Continue


100

90
Rare Earths

Jan 2012 Baseline = 100


80 MMI®
70

60
December 2016
50
17
40 January
17
30
Steady/Flat
Index Value

20 February 2017
10
TBD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved. MetalMiner.com

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

As any good rare earths buyer knows, China produces more than 85% of the global supply of
rare earths and the country is also the largest consumer.

What if China was to become a net rare earths importer? A recent report by Adamas
Intelligence, a rare metal research firm says that China will, eventually, become just that.

The report reiterates how substitution and replacement have hurt demand over the last six
years. It says 30,000 metric tons of annual rare earth oxide demand were lost due end-users’
growing concerns over supply security. On top of that more than 20,000 mt were lost as a
result of the ongoing phase out of mature technologies such as fluorescent lamps, some
nickel-based batteries, and hard disk drives used in PCs.

This isn’t news to anyone following our Rare Earths MMI. It’s been flat for the last three years
and has remained steady at 17 for the seventh straight month.

However, they will eventually recover. According to Adamas, following a lengthy and painful
adjustment, the rare earths market will return to strong global demand growth for a number
of rare earth elements including neodymium, praseodymium, dysprosium, and lanthanum
by 2020. The resulting rise in price will help “sustain the profitability and growth of today’s
dominant producers, and incentivize continued investment in exploration and resource
development globally.”

Rare earths demand will boom from 2020 onwards as growth rates of top end-use categories
such as electric vehicles, wind turbines and other high-tech applications accelerate. One of
Adamas’ key takeaways is that as China’s insatiable demand for rare earth elements continues
to grow over the next decade, China’s domestic production will struggle to keep up in all
scenarios, leading the nation to become a net importer of certain rare earths.

CLICK HERE FOR THE FULL ARTICLE AND ALL GLOBAL RARE EARTHS PRICES.
The Rare Earths MMI® collects and weights 14 global rare earth metal price points to provide a
unique view into rare earth metal price trends over a 30-day period.
MMI | © MetalMinerTM. All rights reserved. 11 of 16

US Auto Sales Set a New Yearly Record


100
Automotive

Jan 2012 Baseline = 100


95
MMI®
90

85

80 December 2016
81
75
January
70 82
Up 1.2%
Index Value

65
February 2017
60 TBD
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

U.S. auto sales set a new record in 2016. Automakers sold 17.55 million vehicles last year, as
sales continued at a hot pace in December and topped analysts’ expectations.

Automakers eclipsed the record year of 2015 by some 70,000 vehicles or 0.4%, according to
tracking firm Autodata Corp. Light truck sales totaled 59.5% of all sales last year, with cars
representing 40.5% of the record. A year ago those percentages were 55.8% to 44.2% and
each were about half just a few years ago.

Another new sales record looked like a longshot just a few months ago, but a strong holiday
sales period helped U.S. automakers forge ahead. Our Automotive MMI increased a point last
month closing out a strong year.

Automotive metals are not just seeing robust demand from U.S. consumers. Automotive
purchases in China are helping the strong economic recovery there, too. Sustainable growth
in the world’s largest consumer of commodities is a bullish trend for all industrial metals and
automotive alloys are no exception.

Ford Motor Company‘s recent decision to reinvest in a plant in Michigan rather than open a
planned facility in Mexico may be the first salvo in an automotive trade war that has long been
promised by President-elect Donald Trump.

CLICK HERE FOR THE FULL ARTICLE AND ALL GLOBAL AUTOMOTIVE PRICES.
The Automotive MMI® collects and weights 7 metal price points used in automotive
production to provide a unique view into automotive metal trends over a 30-day period. For
more information on the Automotive MMI®, please drop us a note at: info@agmetalminer.com
MMI | © MetalMinerTM. All rights reserved. 12 of 16

US Construction Spending Hits a 10-Year High


100
Construction

Jan 2012 Baseline = 100


95

90 MMI®
85

80
75 December 2016
70 75
65 January
60 75
Flat/Steady
Index Value

55
February 2017
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017 TBD

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

U.S. construction spending hit a 10-1/2-year high in November, providing a boost to the
Atlanta Federal Reserve Bank’s fourth-quarter economic growth estimate. Reports suggest
President-elect Donald Trump will inherit a strong economy, with a labor market near full
employment, from the Obama administration.

The Commerce Department said construction spending increased 0.9% to $1.18 trillion
in November, the highest level since April 2006. It was boosted by gains in both private and
public sector investment. Our Construction MMI stood pat at 75 this month, likely due to the
traditional lag-time between increases in purchasing and price increases for some construction
products.

Spending on private construction projects jumped 1% in November to the highest since July
2006 as single-family home building, as well as home renovations, increased. Investment in
private nonresidential structures, which include factories, hospitals and roads, rose 0.9% after
tumbling 1.5% the prior month.

In addition to the good domestic construction product demand news, China’s Caixin
purchasing managers’ index rose to 51.9 in December from 50.9 in November and beat market
expectations. The figure marks the sixth straight month of growth and the strongest upturn in
Chinese manufacturing conditions since January 2013.

Industrial production in China has been the engine that has driven industrial metals price
increases for most of the year and real, sustained demand in the world’s largest producer and
consumer of commodities is a positive development for all the metals we track. The incoming
Trump administration is also threatening to add further barriers to Chinese imports into the
U.S. That’s usually a good thing for domestic prices, but trade wars can have unintended
consequences, too.

CLICK HERE FOR THE FULL ARTICLE AND ALL CONSTRUCTION METALS PRICES.
The Construction MMI® collects and weights 9 metal price points used in the construction
industry to provide a unique view into construction industry price trends over 30-days. For
more information on the Construction MMI®, drop us a note at: jyoders@metalminer.com.
MMI | © MetalMinerTM. All rights reserved. 13 of 16

Europe Recommends 2 Years of Solar Tariffs


100
Renewables

Jan 2012 Baseline = 100


95
MMI®
90

85

80
December 2016
75
52
70
January
65 53
60 Up 2%
Index Value

55 February 2017
TBD
50
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved. MetalMiner.com

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

It looks as if European Union tariffs on Chinese solar materials will last a little longer.

In a presentation of the preliminary results of its anti-dumping and anti-subsidy investigation


into the import of Chinese solar modules and photovoltaic cells into the E.U., the European
Commission has proposed an extension of the current tariffs on Chinese solar panel raw
materials for two more years once the current tariffs expire in March.

Based on confidential documents Reuters reviewed, the Commission said ending the
measures would likely lead to a continuation of Chinese subsidies for the solar sector and a
significant increase in dumped imports of solar cells and modules.

So, no lucrative European markets without tariffs for China, but some in the European solar
industry are also blanching at a continuing lack of competition for solar projects.

SolarPower Europe president Oliver Schaefer told PV Magazine that the Commission’s
recommendation to maintain the trade measures for another two years is the wrong decision,
stressing that the organization will look to E.U. member nations to redress some of what it
calls the “inaccuracies reported.”

“Opening ex-officio interim reviews on the minimum import price mechanism is simply
tinkering at the edges of a profound issue of European-wide importance,” Schaefer said.

European manufacturers of the panels, however, were all for continuing the tariffs. EU ProSun,
a manufacturers’ group that includes Germany’s SolarWorld said there is no shortage of
competitively priced cells and modules in Europe and that the depressed E.U. market was due
to political decisions, such as to reduce payments for green energy, not the import measures.

CLICK HERE FOR THE FULL ARTICLE AND ALL RENEWABLES PRICES.
The Renewables MMI® collects and weights 8 metal price points over a 30-day period.
MMI | © MetalMinerTM. All rights reserved. 14 of 16

Trump's China Policy Won't Impact GOES


225
Grain-Oriented

Jan 2004 Baseline = 100


220
215
Electrical Steel
210 GOES MMI®
205
200 December 2016
195 186
190 January
185 192
Up 3.2%
Index Value

180
175
February 2017
TBD
170
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

Average grain-oriented electrical steel surcharges fell for the third year in a row. 2016 average
surcharges took the biggest hit because Allegheny Technologies stopped production of
GOES. AK Steel did not implement a surcharge until July 2016.

Our own GOES M3 MMI showed only small price movements from month to month. The index
hit a low of 181 back in July and today shows a modest recovery to 192, a 5% gain.

GOES follows its own fundamentals (e.g. supply and demand) and does not always follow
the price arc of other more common forms of steel such as cold-rolled coil or hot-rolled coil.
In fact, some of the wider trade dynamics for those forms of steel had little to no impact on
GOES.

Which brings us to a larger issue. Will President-elect Trump, who is arguably pro-steel and
who has gone on record against China’s trade practices, implement any policies that will likely
impact GOES markets?

To begin, the nature of trade between the two countries, the U.S. and China, appears more
complicated than what can be seen by the naked eye. Raw material/commodity-like supply
chains lack the complexities of supply chains found in industries such as electronics. Blanket
tariffs are easy to issue and calculate for commodities that move from point A to point B. But
electronics industry supply chains involve components, parts, sub-assemblies, final assembly,
etc. across multiple countries and locations. A blanket tariff on electronics will harm China
much more than other countries as the tariff would apply to the “final point of assembly.” This
could create all sorts of electronics shortages and problems here in the U.S.

Why Are We Discussing Electronics Supply Chains?


Because it would be easier to get tougher on China for commodities such as steel. And
though China has curbed excess capacity in recent years, we could see a scenario in which
tough trade policies such as a tariffs could significantly limit Chinese imports which currently
make up about 10% of domestic steel demand.

CLICK HERE FOR THE FULL ARTICLE AND THE ACTUAL GOES M3 PRICE.
MMI | © MetalMinerTM. All rights reserved. 15 of 16

Gold Continues to Lock Horns With US Dollar


100
Global Precious

Jan 2012 Baseline = 100


95 Metals MMI®
90

85
December 2016
80
79
January
75 76
Down 3.8%
Index Value

70
February 2017
TBD
65
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan
2016 2017

© MetalMinerTM. All rights reserved.

Source: MetalMiner IndXSM. Learn how to subscribe - click here!

MetalMiner’s index of global precious metals prices dropped yet again this month, falling 3.8%
for a January 2017 reading of 76, down from 79 in December.

Key Precious Metal Movers


The U.S. palladium price got a bit too frothy last month, resulting in a December MMI reading
of $768 — which was good enough for an 18-month high.

However, for the January MMI reading, that price experienced a pullback, dipping back down
under $700 per ounce (although not quite reaching November’s levels).

So, a correction in that price point’s journey is evident. The U.S. platinum bar price also had a
slight drop-off, as did silver and gold prices across global markets tracked by the MetalMiner
IndX.

What’s Happened Since October?


Short answer: a ton.

Trump. Cubs. Brexit. Syria. Refugee crises. Panama Papers. Pokemon Go. (We could keep
going…)

But a few of those had a lot to do with what’s happening across precious metals markets right
now — especially gold.

Gold in Focus

What’s causing gold prices to fall dramatically? The U.S. dollar... Since mid-August the dollar
started a bull run that is still in play. Three main factors are propelling the dollar’s bull run.

CLICK HERE FOR THE FULL ARTICLE AND ALL GLOBAL PRECIOUS PRICES.
The Global Precious Metals MMI® collects and weights 14 global precious metal price points
to provide a unique view into precious metal price trends over a 30-day period. For more
information, please drop us a note at: info@agmetalminer.com.
MMI | © MetalMinerTM. All rights reserved. 16 of 16

***

A Note on MetalMiner's Price Outlooks

MetalMiner price outlooks and buying strategies help companies:

- Improve purchase timing


- Gauge expected volatility
- Create more competitive bids to customers
- Develop risk mitigation strategies

Our monthly forecasts include: HRC, CRC, HDG, steel plate, aluminum, copper, nickel, tin,
lead and zinc.
Download a sample report of our Metal Buying Outlook.

Questions? info@agmetalminer.com
Source: MetalMiner IndXSM. Learn how to subscribe - click here!