Macquarie reviews 2013 metal prices

Analysts at Macquarie Commodities Research in London and Beijing have totted-up the final numbers for 2013 and conclude in a research note published Jan. 2 that of all the precious and base metals, palladium posted the largest year-on-year annual average price change (+12%), driven by ongoing supply constraints and robust demand for auto-catalysts.

By contrast, in the precious metals sector, the average annual platinum price change year on year was (-4%), while silver was (-24%) and gold was (-16%).

“After having been the only metal to rise on an annual average basis in 2012, gold fell 16% year-on-year in 2013,” the analysts write, “and given its low entry point and lack of marginal buyers, even if the price consolidates at current levels, 2014 looks like another year of falling average prices.”

Palladium was the only precious metal that ended the year at a higher price than it entered it, closing at US$711 per oz. on Dec. 31, 2013, up 2% from its close of US$699 per oz. on Dec. 31, 2012.

Silver prices closed at US$19.50 per oz. on Dec. 31, 2013, after closing at US$30 per oz. on Dec. 31, 2012 (-35%), while gold closed at US$1,664 per oz. on Dec. 31, 2012, and at US$1,202 per oz. on Dec. 31, 2013 (-28%). Platinum began the year with a close on Dec. 31, 2012, of US$1,523 per oz. and ended the year at US$1,358 on Dec. 31, 2013 (-11%).

In the base metals sector, tin clocked an average annual price gain year-on-year of 6%; iron ore 4%; and lead 4%. By contrast, the average annual price change for zinc was (-2%); copper (-8%); aluminum (-9%); and nickel (-14%).

Tin prices closed at US$23,380 per tonne on Dec. 31, 2012, and at US$22,335 per tonne on Dec. 31, 2013 (-4%), while lead closed at US$2,317 per tonne on Dec. 31, 2012, and at US$2,191 per tonne on Dec. 31, 2013 (-5%). The price of copper closed at US$7,907 per tonne on Dec. 31, 2012, and at US$7,395 per tonne on Dec. 31, 2013 (-6%). Iron ore went from a close of US$145 per tonne CFR China on Dec. 31, 2012, to US$134 per tonne CFR China on Dec. 31, 2013 (-8%). Aluminum prices closed at US$2,041 per tonne on Dec. 31, 2012, and at US$1,755 per tonne on Dec. 31, 2013 (-14%). Nickel closed at US$16,998 per tonne on Dec. 31, 2012, and at US$13,832 per tonne on Dec. 31, 2013 (-19%).

Coal prices were also down significantly, with average annual prices of thermal coal FOB Australia (-12%) and metallurgical coal FOB Australia (-22%). Thermal coal closed at US$97 per tonne FOB Australia on Dec. 31, 2012, and at US$85.2 per tonne FOB Australia on Dec. 31, 2013 (-12%), while metallurgical coal closed at US$191 per tonne FOB Australia on Dec. 31, 2012, and at US$148.2 per tonne FOB Australia on Dec. 31, 2013 (-22%).