As Britain woke up to a surprise decision to leave the European Union on Friday morning metal markets, as much as equities and currencies, went into overdrive. Volumes rose particularly in copper and aluminium as the pound declined to a 30-year low and the S&P threatened to downgrade the UK’s rating.
But investors soon remembered that commodities are a very global business and that although Britain’s exit from the EU will likely to some extent affect both economies – which would have implications on metal demand – in terms of global supply and demand the effect will be much smaller than production decisions in China or the level of China’s metal exports.
Nevertheless, the ripple effects are likely to be felt over weeks and months to come, not least because other European countries may consider following Britain’s lead and vote to leave. A much bigger threat is that in the wake …
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Source: Metal Pages
WEEK IN REVIEW: Brexit reality
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