03
Apr
The temporary fall in industrial metals is an opportunity
The risk of a “trade war” is overstated. A rise in customs duties will not reduce demand. Limited production, robust demand, falling inventories.
Key points
- Industrial metals slide -7% in the 1st quarter, with only nickel playing its hand well
- Risks of a trade war are sparking widespread profit-taking
- Ongoing tensions, China will call on the WTO to call the United States to heel
- Counter-productive duties for both the US economy and its consumers
- Risks and impact are over-estimated, the “war” will not have the feared effect
- Aluminium- balanced market
- Zinc- supply and inventories are falling
- Copper- limited supply and growing demand
- Nickel- net deficit on the market
- Price rise for basic metals in 2018
