Improvement in the global macroeconomic picture is likely to help base metals, particularly since there is some supply tightness, says U.S. Bank Wealth Management. The firm notes that improved economic news for China helped copper prices rebound 1% for the last week, returning prices above the key $3-per-pound level. Nickel, meanwhile, lost more than 4%, with the metal retracing most of its year-to-date gains as stockpiles have risen in Asia despite the Indonesian export ban. “On balance, this left the industrial metals complex unchanged for the week,” the firm says. “On average, the industrial metals complex seems to have a tighter balance of supply relative to demand. Any improvements in global economic data will likely lead to rising prices.”
