18/02/2011 - Listening to the Voice of the Market……..

Listening to the Voice of the Market

The raw materials market is under a state of great uncertainty.  Daily we are astonished by the stock exchange index, the situation was unforeseeable, the question now is: where will we end up? This is surely a widespread question which influences the operators of our market.  We have consulted an economic analyst able to help us to understand this historical landmark and support us in finding the best purchase strategy. Following our analysis we have summarized the most interesting issues: Copper price has reached its highest ever level: $10.000/t. It is amazing: + 350% in only 24 months! Most of the economic analysts agree that this exponential increase is supported by important financial operations. Copper’s dramatic rise breaks the basic laws of demand and supply, it is the tangible proof of the state of uncertainty typical of the international investors at this juncture. The feeling is that the copper price may increase more in a short span of time. This because of the Chinese manufacturers’ demand. Others believe that the stress that characterizes these last days is the symptom of an imminent profit taking, which will reduce the value of 10%-15% settling the price to $8900/t.  We may see a further price reduction due to the stock market increase, that may induce to differentiate investments transferring part of the capital presently invested in commodities. This scenario requires a short-term strategy only. The global steel market has been going through major changes as well. Till 2009 contracts were signed yearly, in 2010 quarterly and finally monthly starting from the beginning of the current year. The market is, at the present time, in a highly unpredictable phase, the rules of the game have changed. International investors are more committed in pursuing high income opportunities moving rapidly big investments determining new trends into the worldwide economic scenario. Today, more than ever, it is extremely important to interpret every little signs, in order to make successful choices by using trend following strategies instead of hold steady on outdated rules.

Andrea Farinati
Sales Director

ORANGE1 è uno dei principali produttori di motori asincroni in Europa. La gamma dei motori copre le più esigenti specifiche grazie ad oltre 40 anni di esperienza nella produzione esviluppo.
ORANGE1 si definisce soprattutto come "Produttore di Soluzioni"...
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