Great American GroupAnalysts See Prices Jump for Non-Ferrous Metals
Great American Group Analysts See Prices Jump for Non-Ferrous Metals
Positive economic signs boost non-ferrous metal prices in early December
Analysts with Great American Group, Inc. (OTCBB: GAMR) report prices for non-ferrous metals such as copper, aluminum, nickel, and zinc increased recently upon hopeful signs of recovery in the global economy.
Pricing had dropped earlier in the year due to worrisome global economic conditions, particularly the European debt crisis.
In addition to market fundamentals such as supply and demand, prices for non-ferrous commodity metals are subject to the whims of investors, who in turn are swayed by a variety of factors including industry and economic news. In early December, prices for non-ferrous metals rallied as investors responded to promising data of improved Eurozone and Chinese manufacturing activity.
“Copper prices were additionally supported by strained supplies and further indicators of an economic recovery in China, the largest consumer of copper, especially the Chinese government’s recent approval of a $161 billion infrastructure plan,” said Michael Petruski, executive vice president and general manager of Great American Group’s Advisory and Valuation Services, Machinery and Equipment (M&E) Division.
Petruski noted aluminum pricing was also buoyed by consumers purchasing aluminum to optimize inventory levels as the holiday season approaches, as well as higher scrap costs. According to Great American Group’s newest monthly Metals Monitor, inventory appraisals for certain companies reflected increased recovery values due to slightly higher market prices for non-ferrous metals such as aluminum versus the prior year, although other appraisals demonstrated mixed results.
Given the myriad factors driving non-ferrous metal pricing, Great American Group analysts recognize price trends are volatile for these commodities.
“Despite current positive investor sentiment, market fundamentals for certain non-ferrous metals are not as strong,” Petruski said. “Tin continues to face competition from other packaging materials, particularly aluminum, and lead supplies are presently sufficient for leading buyers of automotive lead batteries. In addition, zinc supplies remain in surplus, and another surplus is expected for nickel in 2013 as new mines come on line.”
Great American Group’s newest monthly Metals Monitor is available for viewing at http://www.greatamerican.com/news_media/downloads/Dec_Metals_Monitor.pdf.
For more information about asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services available through Great American Group, visit www.greatamerican.com.
About Great American Group, Inc. (OTCBB: GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco and London. For more information, call (818) 884-3737 or visit www.greatamerican.com.
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