Industrial metals are still struggling to find direction as a contrast emerges between China’s resurgence and the rest-of-world’s deterioration, strategists at TD Securities inform. Aluminum trades at $1,726.75 while nickel does it at $947.
Key quotes
“The growth in rest-of-world contagion data has become the swing factor for the base metals complex, as growth uncertainty in emerging markets emerges as a key theme keeping money managers on the sidelines.”
“Nickel refinery operations may lend some supply-side support as a meaningful amount of nickel capacity may be cut from the market as soon as April.”
“In response to the waning downside momentum in aluminium, CTAs could be set to cover some shorts should prices break north of $1760/t. However, the bar is being raised for CTA buying in the remainder of the complex.”
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