Commentary

Winds Of Change !

industrious metals

We will discuss some of the prevailing circumstances around the world to try and determine the direction of the metals pack going forward. This year has seen some meaningful gains in both precious and industrial metals taking lot of analysts by surprise.Last year in the month of August China devalued their currency to make them export competitive in view of the falling demand. There was also other factors to consider with supply issues in all the metals and indiscriminate production rise of smelting plants on an anticipated increase in consumption..

We were staring at a high interest rate regime as Fed was supposed to increase the interest rates with US economy looking up and unemployment rates decreasing.All this coupled with a staggering fall in Crude prices led metals to multi year lows and a total carnage in the mining world with most metals trading below the production cost or just at par. What transpired after that was a collective effort from the mining world with production cuts announced and implemented.Even the very stubborn Chinese aluminium industry joined hands with rest of the world in reducing supply.Zinc performed appreciably with supply side tightening and mines closing down due to depleted ore grades..All the metals gained with the earlier risk being put to the back burner. Fed refused to increase rates on the pretext of poor global demand.On top of that Japan and Europe started their own bond buying program to support their economy.Gold gained with easy monetary policies and a Briexit referendum putting a ring of uncertainty on the global financial system.Over all a period of strong prices for the commodities sector and favorable environment with global economy seemingly stabilizing.

Now if we analyse than some of the factors responsible for multi year low prices last year are rearing it’s head again. At least two mines have announced production increases next year,i.e Antamina and Nyrstar. Also on the wires was some Chinese zinc smelting units were trying to increase production to take advantage of the prevailing prices. Aluminium units in China re started production as prices rose and economies of scale improved.Copper is already burdened by over production and soft economic growth.Nickel has also given up some of it’s gains as news doing the rounds is that Indonesia might issue permission for export of nickel ore which was banned since 2013.Chinese currency has devalued substantially since the start of the year.There has been some hawkish comments from the Fed board and it seems that the long delayed interest rate rise regime might come to the forefront again.The positive factors in support of the prices is strong iron ore prices.Crude has recovered substantially from it’s lows.Economy looks to be in a better shape as compared to last year.Production levels even after restarts are not at the same level as last year.

Meanwhile the argument will continue but I will update my readers of the current happenings and developments in this commodity web so that they can benefit from it.

About the author

smartmetaltrader

7 Comments

Click here to post a comment

  • I have been browsing online more than three hours today, but I by no means found any interesting article like
    yours. It’s lovely price sufficient for me. In my opinion, if all webmasters and bloggers made good content as you did, the web might be much more helpful than ever before.

  • Appreciating the persistence you put into your website and in depth
    information you provide. It’s awesome to come across a blog
    every once in a while that isn’t the same outdated rehashed material.
    Great read! I’ve bookmarked your site and I’m adding your
    RSS feeds to my Google account.

  • I was excited to uncover this website. I need
    to to thank you for your time due to this fantastic read!!
    I definitely savored every little bit of it and
    i also have you bookmarked to see new stuff on your blog.

    Can I simply say what a comfort to discover someone who actually knows
    what they’re talking about on the net. You certainly know how to bring a problem to light and make it important.
    More people ought to check this out and understand this side of your story.

    I can’t believe you aren’t more popular because you certainly possess the
    gift.

    Excellent post. I certainly appreciate this site.
    Continue the good work!

    It’s hard to come by educated people about this subject, but you seem like you know what you’re talking about!
    Thanks

    You should take part in a contest for one of the most useful blogs on the internet.
    I’m going to highly recommend this blog!

    A motivating discussion is worth comment. I do believe that
    you should write more about this topic, it may not be a taboo matter but typically folks don’t speak about such issues.

    To the next! Kind regards!!

    Hey there! I just want to give you a big thumbs up for
    the excellent info you’ve got right here on this post.
    I’ll be returning to your site for more soon.

    After I originally left a comment I appear to have
    clicked on the -Notify me when new comments are added- checkbox and now every time
    a comment is added I receive 4 emails with the same
    comment. Is there an easy method you can remove me from that service?

    Many thanks!

    The next time I read a blog, I hope that it doesn’t fail me as
    much as this particular one. After all, Yes, it was my
    choice to read, but I genuinely thought you would probably have something useful to
    say. All I hear is a bunch of crying about something that
    you can fix if you were not too busy looking for attention.

    Spot on with this write-up, I truly feel this web site
    needs far more attention. I’ll probably be returning to read more, thanks for the
    info!

    You’re so cool! I don’t believe I’ve read through something like this before.
    So good to find somebody with genuine thoughts on this subject matter.
    Seriously.. thank you for starting this up. This web site is
    one thing that is required on the web, someone with a little originality!

    I enjoy looking through a post that can make people think.
    Also, many thanks for permitting me to comment!

    Right here is the right site for anyone who wishes to find out about
    this topic. You realize so much its almost hard to argue
    with you (not that I actually will need to…HaHa). You definitely put a new
    spin on a subject that has been discussed for many years.

    Wonderful stuff, just great!

    Aw, this was an incredibly nice post. Taking a few minutes and actual effort to produce a superb article… but
    what can I say… I hesitate a whole lot and never
    manage to get nearly anything done.

    I’m impressed, I have to admit. Rarely do I come across a blog
    that’s both educative and entertaining, and without a doubt, you’ve hit the nail on the head.
    The problem is an issue that not enough folks are speaking intelligently about.
    Now i’m very happy that I found this in my search
    for something relating to this.

    Oh my goodness! Awesome article dude! Thank you so much, However I am having issues with your
    RSS. I don’t understand the reason why I cannot subscribe to it.

    Is there anybody else getting identical RSS issues? Anyone who knows the solution will you kindly respond?
    Thanks!!

    An impressive share! I’ve just forwarded this onto a co-worker
    who has been doing a little homework on this. And he actually ordered me breakfast simply
    because I found it for him… lol. So let me reword this….
    Thanks for the meal!! But yeah, thanks for spending the time to talk about this subject here on your
    internet site.

    After exploring a few of the blog posts on your web site, I
    honestly like your way of writing a blog. I book marked it to my bookmark site
    list and will be checking back soon. Please visit my website as well and let
    me know what you think.

    This page definitely has all the info I needed about this
    subject and didn’t know who to ask.

    There’s definately a great deal to know about this topic.
    I really like all the points you made.

    You’ve made some really good points there.
    I checked on the internet for more info about the issue and found most individuals will
    go along with your views on this website.

    Nice post. I learn something totally new and challenging
    on sites I stumbleupon every day. It’s always interesting to read through content from other authors and practice a little something from their web sites.

    I blog frequently and I genuinely thank you for your content.
    Your article has really peaked my interest. I’m going to take a note of your blog and
    keep checking for new information about once per week.
    I opted in for your RSS feed too.

    Pretty! This was a really wonderful post. Many thanks for providing
    these details.

    Greetings! Very useful advice within this article! It’s the little changes which will make the largest
    changes. Thanks a lot for sharing!

    Hello there! This post couldn’t be written any better!
    Going through this post reminds me of my previous roommate!
    He always kept talking about this. I most certainly will forward this
    information to him. Pretty sure he will have a good read.
    Thanks for sharing!

    Hello, I believe your website could be having browser compatibility problems.

    Whenever I take a look at your web site in Safari, it
    looks fine however, if opening in IE, it has some overlapping issues.
    I just wanted to provide you with a quick heads up!

    Other than that, wonderful blog!

    Having read this I thought it was rather informative. I appreciate you
    finding the time and effort to put this informative article together.
    I once again find myself personally spending a lot of time both reading and commenting.
    But so what, it was still worthwhile!

    Hello there! I could have sworn I’ve visited your blog before but after looking at a few of the posts I
    realized it’s new to me. Anyways, I’m definitely pleased I stumbled upon it and I’ll
    be bookmarking it and checking back frequently!

    I needed to thank you for this excellent read!! I definitely enjoyed every little bit of it.
    I have got you bookmarked to check out new stuff you post…

    Hi, I do think this is a great site. I stumbledupon it 😉 I may come back once again since i have book-marked it.
    Money and freedom is the best way to change, may you
    be rich and continue to help other people.

    Your style is so unique compared to other people I’ve read stuff from.

    Thanks for posting when you have the opportunity, Guess I will just book mark
    this page.

    I used to be able to find good info from your content.

    Good article! We will be linking to this great post on our site.
    Keep up the great writing.

    This is a great tip especially to those fresh to the blogosphere.

    Short but very precise info… Many thanks for sharing this one.
    A must read article!

    I couldn’t resist commenting. Very well written!

    Saved as a favorite, I like your site!

    Excellent article. I will be facing many of these issues
    as well..

    Way cool! Some extremely valid points! I appreciate
    you writing this post and the rest of the site
    is also really good.

    Excellent blog you have got here.. It’s hard to find quality writing like yours these
    days. I truly appreciate people like you! Take care!!

    This is a topic that is near to my heart… Many thanks! Exactly where are
    your contact details though?

    I really love your blog.. Great colors & theme.
    Did you make this web site yourself? Please reply back as I’m
    looking to create my own personal blog and want to learn where you got this from or just what the theme is called.
    Thanks!

    I like it when people get together and share opinions.
    Great website, stick with it!

    Very good info. Lucky me I recently found your blog by accident (stumbleupon).

    I’ve saved as a favorite for later!

    This website was… how do I say it? Relevant!! Finally I have found
    something which helped me. Thanks a lot!

    Everything is very open with a clear explanation of the challenges.
    It was truly informative. Your website is very useful.
    Thanks for sharing!

    I would like to thank you for the efforts you have put in writing this website.
    I’m hoping to view the same high-grade content by you in the future as well.
    In truth, your creative writing abilities has encouraged
    me to get my own site now 😉 https://twitter.com/safewellmart

  • My husband and i got quite thankful Emmanuel could finish up his reports while using the precious recommendations he gained from your own web site. It is now and again perplexing to just happen to be handing out tricks other folks might have been making money from. And now we recognize we now have the writer to appreciate for this. The entire illustrations you have made, the simple blog navigation, the friendships your site assist to promote – it is everything astounding, and it’s letting our son in addition to the family reckon that the subject matter is interesting, which is certainly pretty essential. Thank you for all!