Base Metals: Oil induced rally in copper – ANZ

The base metals sector was mixed as a crude-oil induced rally in copper prices was offset by losses in other metals, strategists at ANZ Bank apprise.

Key quotes

“Copper, the bellwether of the global economy, found support as macro traders rotated back into risky asset classes on the hope that the worst is behind us.”

“Economic data remained weak, with US jobless claims surging for a second straight week. The aluminium market subsequently suffered, with prices falling for a fourth straight day.”

“Production cuts in this market also look unlikely in the near-term, with energy prices, which make up 40% of their costs, down significantly.”