An uptick in demand and signs of a global recovery within markets and related exchange traded funds(ETFs) will take base metals up on a resurgence for the rest of 2009.Strong employment reports, renewed auto and housing demand and signs of a recovery in China have helped spur the base metals’ strong run, says Sara Jane Tasker for The Australian. The rebound has been so strong that analysts expect it to continue for the rest of 2009.
Some other points:
* According to Citigroup, copper has led the base metal recovery, up $600 in recent trading. So far this year, it has gained 100%.
* Aluminum has climbed around 30% despite its London Metal Exchange inventories remaining at record levels, says Michael Taylor for Reuters.
* Base metals should continue their upward journey as fundamentals in a global recovery strengthen and the demand from China remains healthy.
* China is expected to account for 38% of the world’s copper demand by 2014, up from 28% in 2008.
* SPDR Metals & Mining (XME: 41.29 -1.08 -2.55%): up 53.7% year-to-date; holds companies involved in the metals and mining industries
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