Commodity demand is now back where it was in the heady days prior to the 2008 market crash – and then some, with no signs of cooling. Steel and copper are among the hottest metals right now, and they can be accessed with several exchange traded funds (ETFs). Stuart for Ag Metal Miner reports that globally, consumption of copper has now surpassed 2008 levels and steel production is back up to pre-crisis levels. [Signs of Life in the Steel ETF.]
The highlight of the banks’ observations include that it observes that mining is largely a global market whereas steel is a mixture of regional and global. Steel mills, minus those domiciled in China, are typically running at only 75% capacity. If China returns to steel growth next year, raw materials could become pricier while steel costs fall – so keep an eye on those ETFs for evidence of this. [Copper ETFs Come Back to Life.]
Sheshardi Bharathan for Economic Times reports that as China makes their currency “flexible,” we could see even greater demand for materials such as copper and steel as the country’s middle class gains more purchasing power.
For more stories about commodity ETFs, visit our commodity ETFs category.
- First Trust ISE Global Copper (NASDAQ:CU)
- iPath DJ-UBS AIG Copper ETN (NYSEArca: JJC)
- Market Vectors Steel (NYSEArca: SLX)
Tisha Guerrero contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.