Monthly Metals Strategy
We have turned short-term neutral from bearish towards industrial metals as there is potential for a modest relief rally in Q313. Price sentiment has declined to bearish extremes in recent months.
Nonetheless, we continue to expect an H213 China growth relapse and for a continued slowdown over the coming years . As a result , we remain bearish key metals such as copper, iron ore and steel on a medium-term basis.
We retain a bearish iron ore view in our commodities strategy table, a position that has moved 15.3 % in our favour since initiation. That said, we recognise that iron ore prices coul d well rally further off their 2013 lows in the next few weeks.
|Boom Years Are Over|
|S&P GSCI Industrial Metals Index (Monthly Chart)|