The Week in Metals: Cannonbull Run

cannon gorelovs/Adobe Stock

The optimism of a pro-business administration taking over in January has taken hold in the entire global industrial metals complex. Combined with positive sentiment about consumption in top consumer China, it has created a bull run wherein it seems that prices have been shot out of a cannon. We call it the cannonbull run.

Copper Surges, Falls

Investors are already selling and cashing in gains made last month off of smart copper bets, causing prices to fall. Respected analyst Simon Hunt says not to worry. Copper will rise again — and again, likely.

Steel Rising

Steel prices will likely get a boost from protectionist measures by the incoming Trump administration. U.S. Steel is even talking about hiring back laid-off workers. We’ll believe it when we see it, but the optimism among steelmakers, eager to cash in with cheaper domestic prices for raw materials bought by manufacturers keeping jobs in the U.S., is palpable.

Speaking of Manufacturers…

Depending on who you ask, Carrier was either strong-armed into keeping jobs in the U.S. or President-elect Trump made a savvy nudge that previous administrations have made use of that helps U.S. manufacturing. We left that debate to others and talked to Harry Moser of the Reshoring Initiative about what this means for manufacturers.

Remember That Steel Optimism?

It’s MMI week over at MetalMiner and the Raw Steels index hit its highest level in a year. Will the cannonbull run have legs? We hope so. We don’t want to have to speculate about cannonbull run No. 2.

Share on Procurious

Discuss this:

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.