Take aluminum for example. The “miracle metal” is facing a global surplus, ostensibly due to Chinese oversupply, but inventories held in LME warehouses have fallen sharply, while the price is approaching a two year high.
Lead inventories haven’t changed a great deal over the past year, but the price appears to be headed higher anyway. Ditto for zinc, however, the ongoing strike at Noranda, the second largest zinc producer in North America adds fuel to the fire.
As for nickel and tin, whatever may be happening in the fundamentals, prices for these two can’t get out of their own way.
Precious metals look like they want to go higher – again, but we’ve seen this movie before, and have been disappointed each time. Maybe this time is for real, as the dollar retreats further.
Crude oil is losing ground, while natural gas looks to be heating up, and more than a few analysts see equities edging lower, as the “Trump Trade” begins to unwind.
Just another day at the office – Eh?
