3 Reasons to Expect Volatile Metal Prices in 2nd Half of 2013

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Commodities, Metal Prices
red roller coaster with yellow cars against blue sky

Can we get off the roller coaster yet?

Market watchers and metal buying organizations wondering “when should I buy copper?”, for example, have a host of resources at their disposal.

But we’ve distilled the next several months into three reasons to expect more volatility when buying your metals. (Should I use price forecasting?”)

1. Raw Materials Prices Up, Then Down, Then Up…

graph of OTC iron ore contracts

Source: TSI

Iron ore prices are seeing support right now, due to Chinese demand not doing as badly as everyone thought – but just this past May, they were at 5-month lows. What to Watch: China’s restocking cycles.

2. Prime Cuts…of Production

man chopping meat in market

From steel to aluminum, primary metal producers have made promises to cut down on oversupply by shutting down capacity. Whether that happens to the extent that it should – or whether those actions will even affect prices soon enough – remains to be seen.

3. Compliance Anxiety

conflict minerals compliance multicolor flowchart

Less an effect on price, more an effect on organizational uncertainty as we get closer to the compliance deadline for the SEC’s Conflict Minerals Law.

Well, Happy Friday!

What’s the best tool to hedge against commodity price volatility? Arming yourself with intelligence:

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