Metal prices closed higher yesterday following a sharp rally in the price of crude oil; near $66 bbl. The dollar also weakened adding to the commodity movement.  Economic data out of the US was mixed yesterday as Durable Goods order rose a nice 1.9% in April, but prior numbers were revised down.  New Weekly Jobless claims data did not surprise, but continuing claims rose; an indicator of how quickly the unemployed are finding jobs or rather not finding jobs.

China’s economy is expected to expand by 7.5% this year up from a 1st Qtr of 6.1%. It appears China’s massive stimulus plan is having some positive effects. Its stimulus strategy is much different than the US with their plan being front-loaded. Thus the near term positive effects are not unexpected. As for the long term.. time will tell.

As of this writing, the author of this blog continues to look in vain for the ‘green shoots of recovery’ spoken of by Fed Chairman Bernanke in the labor and housing sectors. Still, it seems we have pulled out of the economic dive we were in…for now we seem to be ’skimming the treetops.’  No room for error as companies endeavor to avoid a financial crash. I would really like to get some room…altitude between me and the ground right now. Also known to some as a recovery.

Initial opening numbers in the metal markets indicate a gentle nudge higher today. Stay current by visiting our website @ www.abcmetals.com.

Since we broke out of the $1.40-$1.60/lb COMEX trading range we have seen Copper brush $2.20/lb. Published comments regarding, ‘Why?’ point to a seasonal spring rally, improved sentiment and results in the financial sector, and Chinese policy practices of hedging their dollar portfolio by commodity conversion.  Lastly, rumors of Chinese restocking of strategic reserves has fueled the current spike in the metals market.

In spite of the current Copper uptick, there is concern here at ABC that prior (weeks old) dismal commodity price forecasts remain hard to dismiss. We likely will see these current prices fizzle by late summer. Still, the new average price will be higher as the Global Economy improves.

Aluminum prices are depressed. While Carbon Steel, Stainless, and Aluminum scrap prices remain low and flat.