Barclays: Copper and Oil Price to Slip in 2018

Global economy is recovering, and the US liquidity contraction is expected to strengthen. When the US dollar, measured by the constant value, appreciates, the absolute price of copper fell (relative concept); the depreciation of the non-US currency suppressed purchase demand and also suppressed demand. The appreciation of the US dollar improves the production enthusiasm of non-US copper-producing regions. As copper is priced in US dollar, the appreciation of the US dollar will lower the production costs. Most of the copper-producing areas are in South America and Southeast Asia.

SHFE nonferrous metals fell across the board on Thursday September 10, extending decreases from the prior day.

Shanghai base metals traded lower for the most part on Thursday morning as the dollar held onto overnight gains, while their counterparts on the LME rose for the most part as investors await US jobless claims data set to release today.  

SHFE nonferrous metals rose for the most part on Tuesday September 1 as manufacturing demand and supply continued to recover, and overseas demand started to pick up.

SHFE nonferrous metals closed mixed on Monday August 31.

Oil is one of those commodities where the price is published continuously. Crude oil is the most traded commodity in the world (followed by coffee). The question is how does knowing the oil price help in assessing and managing your investments? Oil is crucial to our modern economy. And while we may feel that the world is going greener and petroleum-run vehicles are becoming old school, virtually everything that we use on a daily basis, whether it’s one’s car, air travel, plastics, every-day consumer products, the vast majority of these are derived from oil and depend heavily on the global oil supply chain.

Shanghai base metals broadly rose on Monday morning as China’s manufacturing activity expanded in August.

SHFE nonferrous metals rose for the most part on Tuesday August 4, following upbeat economic data from the US and Europe.

SHFE nonferrous metals fell for the most part on Friday July 31, but zinc ended 1.8% higher following after a broad rally in the early morning as official purchasing managers' index (PMI) data showed that China’s economy continued its strong recovery in July.

SHFE nonferrous metals, except for copper and tin, rose on Thursday July 30, following after they opened higher today. Investors digested the latest monetary policy decision from the US Federal Reserve and continued to follow a spike in COVID-19 cases.