- “We’re In A New World” – Commodities Crash-Up At Record Pace As Iron Ore, Copper Explode Higher Overnight
by Tyler Durden, https://www.zerohedge.com/
“Transitory” or not, Goldman’s global head of commodities research, Jeffrey Currie, told Bloomberg this week that “we’re in a new world,” and nowhere is that more evident than in the record-setting increase in the price of commodities across the globe. From US/Canadian lumber to Chilean copper and Chinese Iron Ore, prices are soaring with Bloomberg’s Spot Commodity Index up a stunning 62% YoY – the fastest pace since January 1980.
The latest surge came from China overnight, where benchmark iron ore futures surged 10% to a record high, steel prices rose 6%, and copper prices touched record highs on hopes for improved demand amid tightening supply.
“The boom in commodity prices is good news for the materials or the cyclical sectors,” said Rupert Thompson, chief investment officer at Kingswood Group in London. “It cements the idea that you’ve got further rotation towards value and commodity sectors. But on the other hand, you’ve got the clear risk that it does exacerbate worries about inflation.”