Most markets rose last week, with some like tin and zinc making new short-term highs, while others, notably copper, lead, and crude oil are testing overhead resistance, according to John Gross, president. J.E. Gross & Associates (www.jegross.com).
Says Gross in his most recent Copper Journal Weekly Report, “While it is good for many that prices have improved over the past few weeks, the advance seems to be a bit too much, too fast, and without benefit of a significantly stronger fundamental environment.
“Sure, inventories for base metals are down on a year to date basis, but when we look at how far prices have risen from their recent low points, it is concerning. For example, copper is up 18% from $1.94 just two months ago; tin and nickel are up 28% and 26% respectively, while crude oil has climbed almost 35% over the past four weeks. These are not constructive long term basing patterns, but from where we sit, just short-term adjustments.”
If your firm requires assistance in managing price risk in the metal market, John Gross invites you to contact him at [email protected] / (631) 824-6486.