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Some Industrial Metals Prices Move Lower - Is North Korea To Blame?

  • Friday, September 29, 2017
  • Source:ferro-alloys.com

  • Keywords:Iron ore, North Korea
[Fellow][ferro-alloys.com] Summary Industrial commodities rallied and then some ran out of steam. LME warehouses supply China's appetite for commodities. Lots of metal in Korean warehouses. North Korea’s nuclear ambitions make tensions rise. Financing ...

Summary

Industrial commodities rallied and then some ran out of steam.

LME warehouses supply China's appetite for commodities.

Lots of metal in Korean warehouses.

North Korea’s nuclear ambitions make tensions rise.

Financing costs rise and selling results.

In recent months, the prices of many industrial commodities have moved appreciably higher. Iron ore, the primary ingredient in steel, moved from $52.03 to over $76 per ton from June 13 through Sept. 1. Shipping rates have moved to the upside along with the price of lumber. In the world of industrial commodities, base or nonferrous metals including copper, aluminum, nickel, lead, zinc, and tin are staples when it comes to building infrastructure around the world. These metals trade, most liquidly, on the London Metals Exchange, and their prices can be highly volatile at times. During periods of economic expansion, prices tend to rise, and during contractions, they fall.

In July of this year, the price of copper broke out to the upside above technical resistance at around $2.83 per pound. In August, the price of the red metal moved above the $3 per pound level for the first time since 2014. Copper is often a leader in the base metals sector, and many in the market have nicknamed the base metal Doctor Copper because the commodity has a tradition of diagnosing the health of the global economy. Therefore, as the price of copper moved higher, other industrial commodities and base metals followed it to the upside. Copper reached a high of $3.1785 per pound on September 5, but since then the red metal has been moving lower and is once again below $3 per pound.

Industrial commodities rallied and then some ran out of steam

We have witnessed some stealth rallies in industrial commodities prices over recent months. However, over recent weeks the upward trajectory of markets seems to have run out of steam.

Copper is often the benchmark raw material when it comes to the industrial sector as its nickname is Doctor Copper, and it tends to diagnose the health of the global economy.Source: CQG

 

  • [Editor:Wang Linyan]

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