Industrial metals have witnessed massive gains in 2017 and are expected to end the year with a bang.
LMEX Metals Index of 6 major contracts has risen nearly 29% in 2017, the biggest gain in percentage terms since 2009.
The best performer was aluminum which gained around 35%. Aluminum was followed by copper with a gain of about 32%, zinc about 31%, lead 26% and nickel about 21%.
Basemetals rose in 2017 as optimism about US and Chinese economy boosted demand expectations. US economic data showed continued growth while equity markets hit record high level. Chinese economic data showed stability while equity markets edged up.
Industrial metals also benefitted from supply concerns as China reduced production to check overcapacity and pollution.
The year 2018 seems to a promising year for industrial metals as global demand outlook remains positive while supply concerns persist.