18.11.2011 - Heavy metal commodities bets
The gap between the marginal cost of supply and the price at which demand gets destroyed offers commodities investors a useful signpost in this very uncertain economic climate. Take copper and aluminum. Copper is priced at about $7,600 per metric ton; aluminum around $2,100. Based on UniCredit estimates, that means copper trades 90% above its marginal cost of production, while aluminum is 16% below its own. Yet demand for aluminum is growing about twice as fast.............................................Full Article: Source
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