Base Metals: Mixed performance in 2019 – Rabobank

Rabobank analysts point out that so far 2019 has been a mixed year for industrial metals with a wide dispersion in market returns.

Key Quotes

“The ongoing US-China trade war along with weakening economic growth outlooks have weighed heavily on market sentiment.”

“Nickel is the best performing industrial metal in 2019 by a wide margin - driven higher by surprisingly firm demand for stainless steel and speculative buying in July.”

“Aluminum prices have been under pressure over the last 12 months given the relatively weak fundamentals and aggressive speculative selling.”

“We see copper outperforming other industrial metals in 2H19 given the extreme short positioning and tightening fundamental balances.”