Base metal prices will go no lower than last year’s low, said an analyst at London-based ETF Securities.
“I think for industrial metals to drop back through those levels you'd have to see some really horrific news,” said Nicholas Brook, head of research for ETF Securities.
“Based on that, I would say that industrial metals have probably found a floor.”
Prices are still way off the highs reached in the past few years, however, recent strength in copper has convinced some the market has bottomed out, and recent announcements from China regarding major infrastructure spending.
“What happens in China really matters a lot,” Brook said.
However, due to high inventories and weak overall demand, it is not likely there will be high gains anytime soon.
