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Expect metal sector to close positive this year, says Paul Bartholomew of S&P Global Platts

Updated : July 03, 2019 12:57 PM IST

Paul Bartholomew, the senior managing editor at S&P Global Platts, shared his views on the commodities market. 

On the metal sector, Bartholomew said, "The US-China trade tension is hanging over various markets. Globally it seems to be the whole consumer-driven segment, the auto sector, white goods, appliances that are really in the doldrums at the moment. Car production uses a range of metals. China at the moment, not many people are very highly leveraged to property prices, liquidity is still a little bit tight. So, I think it’s hard to see too much kind of upside for those particular end-user segments in the near term."

“Sentiment is a major factor and people are not inclined to invest and purchase when they do not know what is going to be happening in the next couple of months and that will be another big impact on prices. We look around the world, many of the manufacturing PMIs are still very weak; the US was very weak and Europe is practically in contraction or trying to be in contraction and China as well the PMI that came out a couple of days ago is now showing that manufacturing is in contraction again. So, it is going to be very much driven by infrastructure and property construction which will keep the metals market afloat," added Bartholomew.

“Some areas you might see a little bit of softening out in Q3 and possibly some recovery if you look at things like copper, lithium, and nickel – they all have very good long term story,” he said.

Bartholomew expects the metal sector to close positive this year.
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