Posted on 03/02/2008 in category Non-Ferrous

Non-Ferrous Metals Division world-wide monthly market updateby Bob Stein, President of the BIR Non-Ferrous Metals Division

Pessimists in Control

If there were any doubts that market participants fear a recession, the dramatic drop in the world’s equities markets should serve once again to show that the pessimists seem to be in control. While metals markets don’t always mirror share prices, recent activity would suggest that we are in a period when both speculative and fundamental participants have a negative mindset and metals prices are clearly on the defensive.

Add to this the opinion of the United Nations, who recently expressed their fears that the world’s economies are vulnerable. Bulk freight rates as traded on the Baltic Exchange, the world’s leading index for bulk shipments, has made dramatic drops in the past week of about 5.75%. Inflation is taking hold in many of the world’s economies, most notably perhaps in China, and there is reluctance on the part of many consumers to buy forward metal.

Seethe monthly world wide market update in our Members only section withreports from key countries.