Non-oil industrial commodity prices gaining strength - AmpGFX

Greg Gibbs, Director atAmplifying Global FX Capital notes that oil prices have been volatile recently, down from the peak for the year in June, up from the low in August, and now close to the middle of a narrowing wedge. 

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“However, there has been more consistent strength in natural gas and coal prices.

Steel and iron ore futures are down from a recent peak in August, but firmer over the last week, and up solidly from the beginning of the year.  Coking coal (used in steel-making) has rallied sharply this year and remains near highs.  The stronger steel markets indicators are consistent with improved demand in China this year and consolidation in China’s coal mining.

Copper prices are stronger over the last two weeks and broader indices of industrial metals are approaching previous highs for the year in June.”