NEGOTIATOR’S TAKE: It might be a good time to lock in prices for metal products.
February 2016 – The price collapse stops here
When will base metal prices stop falling? They have been trending lower for months, even years in the case of copper, and most have plumbed new lows in the first few days of 2016. The current macroeconomic gloom is overwhelming as China wobbles, emerging markets falter and stock indices the world over swoon.
Have we yet reached the point of maximum despair? Yes, according to the bulk of analysts who participated in this week’s Reuters poll. The median expectation pretty much across the base metals board is for prices to bottom out this quarter and then start heading higher again.
Nickel and Zinc recovering strongly
Some are expected to do better than others with nickel and zinc seen recovering strongly from current levels. Most out of favor is aluminum, unsurprisingly given its toxic combination of structural overcapacity and high stocks. Of course there are some contrarians among the 32 analysts who submitted forecasts….Read the rest of this ProPurchaser sourced article, HERE.
ARTICLE AUTHOR: Andy Home, Senior Metals Columnist at Thomas Reuters | View Andy’s profile at LinkedIn
EDITOR: David Evans | View David’s profile at LinkedIn