Sentiment bullish after LME Week, with zinc and aluminium the top picks for 2006

摘要

The consensus of opinion that emerged at LME Week was largely bullish, with much optimism evident for a strong start to 2006 in terms of metals demand. Meanwhile, producers across the board are facing number-ous problems that are resulting in concerns the supply side will continue to under perform. This bullish tone has set November off to a positive start. The first 10-days of the month has seen zinc, aluminium and copper achieving new cycle highs, and lead holding elevated levels just below its peak. The other two metals, nickel and tin, have detached themselves from the stronger metals, and have been stuck in well-established downtrends during recent months. However, even these two 'bear markets' are starting to show signs of finding a (temporary) floor, and a case can be made for both of these bouncing higher again, if not this year then early in 2006.