COM - DBB: The Case For Copper Aluminum And Zinc
2024-04-18 11:40:31 ET
Summary
- Base metals, including copper, aluminum, and zinc, trade on the London Metals Exchange and are influenced by liquidity and price volatility.
- Copper prices have rallied in early Q2, while aluminum and zinc prices have also followed an upward trend.
- Stockpile levels of copper, aluminum, and zinc provide mixed signals about the metals' fundamentals, but China's economy remains a critical factor for base metals prices.
- The Invesco DB Base Metals Fund ETF provides exposure to copper, aluminum, and zinc prices.
Base metals are a group of six nonferrous metals that trade on the London Metals Exchange ("LME"). The LME trades copper, aluminum, nickel, lead, zinc, and tin forwards. The aluminum, zinc, and copper markets are the most liquid, while nickel, lead, and tin suffer from limited volumes and open interest. Low liquidity tends to increase price volatility, creating hazardous trading and investing conditions....
DBB: The Case For Copper, Aluminum, And Zinc