Tag Archives: industrial metals

Industrial Metals On Pace For Worst Month In 4 Years

While most of the markets have calmed as investors wait for Brexit and the Fed rate decision, industrial metals are crashing. The S&P GSCI Industrial Metals Total Return is down 8.7% month-to date (through May 23, 2016,) and on pace to record its worst month since May 2012, when it lost 9.7%. At this rate, the Read more […]

Metals Don’t Reflect Chinese Demand Growth

After China reported year-over-year first-quarter growth that showed signs of improvement, it overpowered negative news of the Doha oil production meeting failure and sent commodities rallying. Investors’ attention quickly shifted from oil to the other economically sensitive sector, industrial metals. Many believe the uses for metals in construction and automobile manufacturing are the driving force behind the sector. Read more […]

Is GDP Growth Over?

In April, the S&P GSCI gained 11.1%, posting its 19th best month in history with data back to January, 1970.  The last time the index had performance this strong was in May, 2009 but what is most interesting is that all commodities in energy and industrial metals were positive. When the economy slows, people still consume agriculture Read more […]

Now Your Penny Is Worth More: It’s What’s On The Inside That Counts

Do you know what is inside that seemingly copper penny? It may be more valuable than you think. I’ll give you a hint: It rhymes with think. Inside the industrial metals, we usually speak of copper and aluminum, especially in the context of the spread trade where it seems aluminum is perpetually more abundant than Read more […]

Another Fuel In The Fire: The Base Case

Finally, in April, commodities got hot enough to turn around even the base metals (also known as the industrial metals,) up 1.8% for the month. Although this comeback is not driven by the main supply shocks we are experiencing in energy and agriculture, it is fundamental in nature.  China’s State Reserves Bureau (SRB) is now buying copper Read more […]

A NICKEL For Your Thoughts?

Industrial Metals are historically the most economically sensitive sector besides energy. While Chinese oil demand growth is set at 3.6% in 2014 and HSBC’s Chinese Manufacturing Purchasing Managers’ Index (PMI) edged down to 50.8 in November, barely above the key 50-threshold delineating expansion from contraction, according to IEA’s OMR Report, nickel is the only commodity in petroleum and industrial Read more […]

What Is The Golden Link Between $275,000, 750 Million AND -32.8%?

The hint in the title is GOLD and the answer is the year 1981.  In 1981, a Superbowl ad was $275,000, 750 MILLION people watched Prince Charles and Lady Di get married and GOLD lost 32.8%.  In 2013, the cost of a Superbowl ad was $4 million, Prince William and Kate Middleton welcomed Prince George, Read more […]