Inflation fears are rippling through industrial metals. Here's where prices could go next
Inflation concerns are affecting industrial metal prices, particularly copper. Diverging bond markets in the U.S. and China are contributing to market volatility. Supply disruptions from major mines are further complicating the situation.
- ▪Rising inflation expectations in the U.S. are pushing Treasury yields higher.
- ▪Chinese bond yields are at historic lows, indicating weak domestic demand.
- ▪Supply disruptions from mines like Grasberg and Kamoa-Kakula are impacting copper availability.
Opening excerpt (first ~120 words) tap to expand
Cooper added that a stark divergence between U.S. and Chinese bond markets is driving heavy fund volatility."In the US, rising inflation expectations are pushing Treasury yields higher, supporting a strong U.S. dollar and prompting periodic profit-taking across long copper positions," he said."Conversely, Chinese government bond yields are hovering near historic lows, signalling a sluggish domestic manufacturing and property sector that is currently struggling to provide the physical demand required to support a sustained next leg higher."Despite these macro pressures, the physical market remains highly sensitive to ongoing supply-side disruption risks, according to Wood Mackenzie.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at US Top News and Analysis.
Discussion
0 commentsMore from US Top News and Analysis
