Metals Rebound as U.S.-China Trade War Deepens

The video discusses the unexpected bounce in base metals, highlighting strong micro fundamentals as the fourth quarter approaches. Despite fears of trade wars, metal imports from China remain high. The market has largely ignored these fundamentals, with industrial metals showing a decline over the year. Specific metals like aluminium, lead, and nickel are discussed in terms of their resilience and decoupling from market fundamentals.

What is the main reason for the strong micro fundamentals in base metals as we approach the fourth quarter?

• Decreased demand in the US

• Rising imports from China

• Increased production in Europe

• New mining technologies

Which industrial metal has performed the worst over the past year?

• Iron ore

• Aluminium

• Copper

• Zinc

Why is aluminium considered decoupled from its fundamentals?

• Due to increased demand in Asia

• Because of ongoing sanctions

• Due to new mining techniques

• Because of reduced production costs

What makes lead relatively immune to the business cycle?

• Its use in construction

• Its role in battery production

• Its high recycling rate

• Its low production cost

Why is nickel considered important in the context of electric vehicles?

• It is a key component in lithium-ion batteries

• It is a substitute for lead in batteries

• It is used in the car's paint

• It is used in the car body