January MMI: The Metals Slip in Oil, Can’t Get Up

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We thought 2014 was over? The bear market seems to have followed us into 2015.

The fall in oil prices that began last year has battered the base and industrial metal sectors this month and the investment metals didn’t fare much better in MetalMiner’s Monthly MMI®. All but 3 indexes fell, including the previously fundamentally strong ones: Aluminum, the Stainless MMI and Global Precious.

While it might have been bumpy and unpredictable, we preferred the bull to the current situation.

The Rare Earths MMI® and the GOES M3 MMI® were the only indexes to post positive growth this month and these outliers had a lot to do with major changes in tax structure and classification of products for international trade purposes. The Renewables MMI® was steady and all the other metals fell in the face of low oil prices and the strong dollar. Renewables is a bit of an outlier, in general, because its end products benefit so greatly from tax rebates and other government subsidies.

Looks like that darn bear followed the base metals into 2015. If you want to make sure he doesn’t get your picnic baskets, check out our forecasting offering.


* Effective 12/1/14, MetalMiner updated some of the source data from China used to calculate Raw Steels, Aluminum, Copper and Stainless MMIs. Therefore the December index reading appears a little more volatile when compared to the November reading. Any movements in the January reading will once again reflect only market price changes as opposed to market and source data prices changes.

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