Non-ferrous metals industry: nonferrous metals investments i
Time: 2012-09-17 19:31
U.S. QE and Central Europe's economic risk is a key factor in the metal price movements, but between China and Japan over the Diaoyu Islands dispute intensified, and also added new uncertainties to the metal prices.
The Diaoyu Islands tension, war is expected to gradually concentrated. The Japanese government formally nationalize the Diaoyu Islands and the Diaoyu islands will be handed over to the "management" of the Japan Coast Guard. The Chinese government strictly issued positive statements, harsh words, harsh tone. Said the Chinese government will not sit back and watch the territorial sovereignty is violated. If the Japanese side insists, all the serious consequences resulting therefrom can only be borne by the Japanese side.
Power metal supply and demand side of the war will will be tight. Reference to World War II and the Korean War, the basic metal prices in the rising stage. Can analyze the reasons include: war metal consumption great war destruction capacity decline, 3 the two country's post-war reconstruction is expected. Businessman hoarding commodities behavior. Day as the two economic powers, a large metal smelting, war labeled as a war of attrition, then the above four reasons also strengthen the metal supply and demand side will enhance metal prices.
The impact of war on the financial attributes of metal is a double-edged sword. The competition between Japan and the United States benefit. On one hand, the funds will be the influx of dollars hedge, on the other hand, military orders will stimulate the U.S. economic recovery. We judge that the dollar index will rise, and suppression of the metal price. But from another perspective, the metal is also likely to lead to financial speculation and hoarding of strategic materials.
Military related metals are trading opportunities. Sino-Japanese dispute over the Diaoyu Islands is on the rise, will ultimately lead to the evolution of the war can not predict. But in this war expected, we believe that some metal stocks also be a positive stimulus. The war closely related metals include tungsten, titanium, molybdenum, zirconium, germanium, rare earth, copper
