66797_p01_p30_Text
3/13/02
9:19 PM
Page 18
LME Copper Price and Inventory
GOLD
Metric Tonnes (thousands)
US Cents/lb
900
140
800
120 100
700
Cash Price
600
80
500 400
60
300
Inventories 40
200 20
During the year, mine production rose marginally to 2,595 tonnes from that in the previous year. However, in the second half supply contracted somewhat as a result of some mine closures and liquidation of hedging positions.
100
0
0
1997
1998
1999
2000
2001
METALLURGICAL COAL
Almost 70% of world steel production relies upon using metallurgical coal in iron ore smelting. Global seaborne trade in metallurgical coal was approximately 180 million tonnes in 2001, with Australia dominating these exports at 56% of the total. Canada and the U.S. are the other major exporters, each accounting for approximately 15% of the world total. Japan continues to be an important market for our metallurgical coal sales, however continued diversification of sales into other geographic market areas remains a high priority to achieve targeted production growth. Spot prices firmed significantly throughout 2001 – a reflection of the market moving from oversupply to a balanced position. The market outlook for 2002 remains favourable, although some impact will be felt from declining thermal and semi-soft coal prices, and a projected cut in world crude steel production required to reduce its surplus capacity.
18
In 2001, the average U.S. gold price declined 3% year-on-year, while the closing year-end price in US dollars was up 2% and the Canadian dollar year-end price was up by 9%.
On the demand side, global fabrication including jewellery and other products was off by 7% due to slower economic growth, particularly in the electronics market. The recent round of consolidation in the industry may result in a better balance of supply and demand, both through rationalization of marginal operations and a reduction of hedging programs of some large producers.
Elkview Coal Sales Coal Sales (kmt)
Average Price (US$/mt)
6000
60
5000
50
4000
40 Price
3000
30
2000
20
1000
10
0
0
1999 Others
2000 Japan
2001