(Reuters) – Industrial metals, the best-performing commodities sector over the past six months, look set to extend their surge into 2021 as a China-led global economic recovery, a weak U.S. dollar and potential supply disruptions continue to lend support. The S&P Goldman Sachs industrial metals index – a subset of the widely-tracked S&P Goldman Sachs Commodities Index (S&P GSCI) – has climbed over 38% since June 1. And copper, aluminium, nickel and zinc have all eclipsed price gains made by gold, which scaled all-time highs in August. For a graphic on Industrial metals the best-performing commodities sector since June: “The V-shape recovery in China, supported by the country’s strict and immediate lockdown implementation, government-led stimulus and supportive actions from the People’s Bank of China, continues to outperform market expectations,” said analyst Natalie Scott-Gray of broker StoneX. The country’s mammoth manufacturing sector has recovered especially well, benefiting from a global boom in white goods demand as well as rebounding car production. The last time the industrial metals index topped the annual rankings of the S&P GSCI indices was in 2017, when the global economy was expanding at its fastest pace since 2010 and aggressive cuts to excess capacity in top metal… continue reading
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