SGML - Materials Sector Weekly Round-up: AMR tops list; SQM drops on earnings result

The S&P Materials index closed this trading week in red, down 1.95%, one of the top losers for the five-day period. The Materials Select Sector SPDR ( XLB ) also dropped 1.36%.

The commodities market felt some pressure at the start of the week, after China's economy showed signs of concern as industrial output growth came in weaker than forecasted. Gold ( XAUUSD:CUR ), silver ( XAGUSD:CUR ), and copper ( HG1:COM ) all slide by 1.4%, 2.3%, and 3% respectively.

Gold futures continued to fall for the fifth straight session on Friday, halting the metal's month-long rally in the wake of a rising dollar and higher Treasury yields. Front-month Comex gold ( XAUUSD:CUR ) for August delivery settled -2.8% to $1,747.60/oz this week, while front-month silver ( XAGUSD:CUR ) slumped to its biggest weekly percentage loss since January, -7.8% to $19.058/oz.

Zinc prices jumped to two-month highs on Tuesday after Nyrstar, one of Europe's largest smelters, said it will halt production from Sep. 1 "until further notice" because of elevated power prices, prompting fears of shortages. Benchmark zinc ( LMZSDS03:COM ) on the LME traded +6.6% to $3,797.50/metric ton. Other base metals, including aluminum, copper, nickel and lead, also showed gains.

However, majority base metals registered weekly drop, down between 2% and 6% this week. On Friday, LME aluminium price dipped 0.5% at $2,390/ton, lead fell 0.5% to $2,062.50 and tin was down 0.2% at $24,550. Copper prices ( HG1:COM )  rebounded on Friday but ended the week slightly lower.

Lumber Futures ( LB1:COM ) dropped ~12% for the week, settling at $520 per thousand board feet. The commodity has been on a losing streak since March amid rising interest rates, cooling housing market and a slowdown in new home construction.

Take a look at this week's top gainers among basic material stocks ($2B market cap or more):

• Alpha Metallurgical Resources ( AMR ) +5.83%
• BHP Group ( BHP ) +5.11% ; BHP reported its largest-ever full-year profit on Monday, easily beating the analyst consensus forecast.
• WD-40 Company ( WDFC ) +4.18% ;
• Innospec ( IOSP ) +3.10%
• Huntsman ( HUN ) +2.91%

Here are the week's top decliners:

• Sociedad Quimica y Minera de Chile ( SQM ) -18.13% ; Shares fell after Q2 net earnings soared by nearly 10x but failed to meet analyst expectations.
• Sigma Lithium ( SGML ) -15.27%
• Hecla Mining Company ( HL ) -9.96% ; Gold and silver miners including Hecla, Gerdau and Pan American Silver were hurt by weakness in metal prices this week.
• Gerdau ( GGB ) -8.37%
• Pan American Silver ( PAAS ) -8.35%

Other materials ETFs to watch: iShares Global Timber & Forestry ETF ( WOOD ), Materials Select Sector SPDR ETF, Vanguard Materials ETF ( VAW ), iShares Global Materials ETF ( MXI ), SPDR S&P Metals and Mining ETF ( XME ), VanEck Vectors Gold Miners ETF ( GDX ), iShares MSCI Global Gold Miners ETF ( RING ), Global X Copper Miners ETF ( COPX ).

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