Metals: Supported by demand improvement - ANZ

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at ANZ, suggests that base metals appear to have found some support, with better-than-expected Chinese trade data raising hopes that demand is improving.

    Key Quotes

    “China’s imports of base metals rose sharply in December, with nickel (554% y/y), zinc (271% y/y) and copper (30% y/y) volumes particularly strong. Overall, the impact of weak prices in late November appears to have sparked some opportunistic buying by Chinese consumers. But with inventories remaining relatively unchanged, there also appears to be some strong underlying demand behind this improvement.

    However, a sell-off late in the last week does suggest that there are still some lingering concerns. News that the commissioning of the Las Bambas copper mine in Peru (400ktpy) is ahead of schedule, raised fears that recent supply cuts will be overwhelmed by growth elsewhere.”
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