February 8, 2024
Turning the Corner: The Resurgence of Industrial Commodity Prices
Green shoots for copper, nickel, zinc, aluminium prices
In a recent trading desk note, Marcus Garvey, head of Macquarie commodities strategy based in Singapore, and a team of analysts, brought forth compelling evidence of the industrial commodity sector’s revival. According to the note, the full set of PMIs for January, particularly the world manufacturing new orders which saw a 1.2pp increase to 49.8, marks a potential turning point for the global industrial cycle, bearing bullish implications for industrial commodities demand. Furthermore, expectations of a smaller reduction in US interest rates this year, as opposed to previous estimates, have bolstered the dollar and exerted downward pressure on metal prices
