Despite constant noises from the
doomsayers both the US and Chinese economies are chugging
along quiet nicely at the moment.
Copper has finally broken through
US$1.90/lb; aluminium is over US0.90/lb and zinc above US$0.73/lb. On Friday
night LME of metals, excluding aluminium alloy, all fell. New orders for US
non-ferrous metals have spiked upwards and China looks
forward to continuing growth. Metal prices would have been higher without the
strong rally of the USD against other major currencies.
The US economy is
doing so well that fears of inflation will make sure the Fed keeps lifting rates
and this is good news for demands of raw materials. Higher prices and a weaker
AUD is a windfall for many domestic miners.
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