Skip to main content
No. of Recommendations: 0
Outlook for metal especially copper looks grim

BHP might be a good one to sreen. Way down off its 52-week high


A Good Year for Metal Bashers

http://online.wsj.com/article/SB1000142405311190426550457656...

By LIAM DENNING

Hear that crash? It's the sound of falling metal.

Base metals, the hard end of the industrialized economy, are feeling the sharp end of economic uncertainty. Cash copper prices on the London Metal Exchange have dropped 6% since the end of August, a dreadful month itself, and now sit just above mid-May's low point for the year.

Industrial metals have spent 2011 trying to outrun deteriorating economic growth in the Western world and monetary tightening—or at least an end to loosening—pretty much everywhere. The first setback came in the spring, when the Libyan-inspired spike in energy prices emerged to threaten consumers. Aluminum and especially smaller markets such as tin, nickel and lead picked up again, but quickly ran into early May's broad rout in commodity markets.

In the latest sell-off, the euro-zone's travails dominate. Amid such nervousness a newspaper report saying clients of Chile's Codelco, the world's largest copper producer by volume, were cancelling orders forced renewed selling this week. While the Dow Jones-UBS Commodity index is about flat for the year, held up by oil and grains, all the major industrial metals are now down since December.
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.