Feeling Bullish: Copper, Zinc Markets Join Aluminum
The bullish trend has become even stronger.
Copper and zinc prices have joined the bullish trend led by aluminum in the latest rally, which started at the beginning of August.
This new uptrend in these three metals is accompanied by heavy buying volume — signaling a a bull market.
Benchmark Your Current Metal Price by Grade, Shape and Alloy: See How it Stacks Up
As suggested in our article published Tuesday, aluminum prices have outperformed and broke out from their sideways trend.
Copper prices have decided to join in on the fun, and are also trending up again.
After the breathtaking rise that copper prices demonstrated at the end of July, prices are up again. A bullish sentiment has returned for copper.
Zinc prices have also hit their highest levels recorded since 2007, according to FastMarkets historical data, and point to a possible continuing uptrend. A rally in zinc prices occurred just after the sharp increase in aluminum prices. Buying trading volumes remain heavy, therefore the uptrend is underpinned by strong buying sentiment.
Although MetalMiner considers a variety of variables, indexes and data to analyze market sentiment, the most important variable is how metal prices behave.
Commodities have re-started a short-term uptrend after they lost steam at the beginning of the year. Meanwhile, industrial metals have moved from bullish (to nearly sideways/top, as we had even considered switching our industrial metal outlook to bearish but did not) to absolutely bullish again (mainly caused by these three metals rallies). The U.S. dollar has fallen relentlessly since the beginning of the year.
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What This means for Buying Organizations
Buying organizations should watch metal prices closely to determine the best strategy to commit long- and short-term purchases.
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