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The S&P Materials sector closed this trading week in green at +3.09%, one of the top gainers for the five-day period. The Materials Select Sector SPDR (XLB) was also up +2.51%.
Copper prices (HG1:COM) dropped slightly -0.81% despite a step-up on Friday as top consumer China released measures to support its economy and the metals-intensive property sector.
Metal demand remains hurt by a surge in COVID-19 in China and lockdowns in the country. Prices of the metal has fallen around -18% YTD.
Analysts at Citi told Reuters they see weakness in prices “amid a return of lockdowns in China and broader weakness in global demand … we instead expect more durable price recoveries later in 2023”.
Iron futures (SCO:COM) had a good five-day run, closing at +1.54% and continuing its rally as top steel producer China makes moves to shore up its economy.
This week’s top gainers among basic material stocks ($2B market cap or more) were largely steel and precious metal stocks, driven by strong iron prices and gold (XAUUSD:CUR) and silver futures (XAGUSD:CUR), which rose +0.34% and +2.48% respectively:
- Pan American Silver (PAAS) +9.36%
- Alamos Gold (AGI) +8.71%
- United States Steel (X) +8.07%
- Yamana Gold (AUY) +7.49%
- Univar Solutions (UNVR) +7.12%
Here are the week’s top losers:
- Scotts Miracle-Gro (SMG) -7.59%
- Suzano (SUZ) -2.73%
- Gerdau (GGB) -2.63%
- Albemarle (ALB) -2.22%
- Green Plains (GPRE) -1.77%
Other materials ETFs to watch: iShares Global Timber & Forestry ETF (WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (VAW), iShares Global Materials ETF (MXI), SPDR S&P Metals and Mining ETF (XME), VanEck Vectors Gold Miners ETF (GDX), iShares MSCI Global Gold Miners ETF (RING), Global X Copper Miners ETF (COPX).
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