SHANGHAI, Apr. 9 (SMM) – El Niño has arrived, according to a report released by the National Oceanic and Atmospheric Administration (NOAA) in early March.
El Niño is a phenomenon that occurs irregularly in the tropical Pacific Ocean every two to seven years and affects weather all around the world.
What will El Niño do in 2015’s metals market?
"Extreme weather related to El Niño, such as floods or droughts, will be a big threat to production in world’s major metal producing countries, including Chile, Peru, Indonesia. Supply disruption resulting from this will boost the market,” said an analyst from COFCO Futures in SMM interview.
Another analyst from Guosen, however, expects the impact on metals market to be indirect, saying the disruption on production in major producing countries remains to be seen.
But, he adds that copper price will likely stage a rally in 2Q.
Foreign investors generally expect a boost on the market from El Niño, especially copper and nickel prices.
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