The S&P Materials sector closed the trading week in red at -6.73% as copper and other industrial metals fell in the wake of recession concerns and renewed COVID-19 restrictions in China. The Materials Select Sector SPDR (NYSEARCA:XLB) was also down 6.55%.
Three-month copper (HG1:COM) on the London Metal Exchange fell slightly to $9,583.50/metric ton on Friday after dropping 1.2% in the previous session, while LME aluminum, nickel, lead and tin slipped -0.8%, -1.3%, -0.9% and -0.8%, respectively.
"This latest setback raises questions about whether the reopening will be as smooth as hoped, thus putting at risk the pickup in economic activity across the entire country," ANZ analysts said, according to Reuters.
Aluminum prices plunged to their lowest in nearly six months on Friday, with three-month aluminum on the LME (LMAHDS03:COM) down 2.8% to $2,685/metric ton. Aluminum futures settled at $2,680/metric ton at market close, down ~5% for the week.
Gold prices (XAUUSD:CUR) registered a 1.08% growth for the week, closing at $1,870.93/oz, as investors turned to safe havens after a hotter-than-expected reading on U.S. May inflation numbers.
Lumber futures, meanwhile, fell to its lowest in nine months as higher interest rates and soaring home prices begin to take a toll on home sales. Chicago lumber futures fell as low as $568.40 per 1,000 board feet on Wednesday to the cheapest since September, according to Bloomberg. July lumber (LB1:COM) settled at $555.90 per 1,000 board feet at market close on Friday, down 12.42% for the week.
Now, taking a look at this week's top gainers among basic material stocks ($300M market cap or more):
- Ramaco Resources (METC) +15.41%
- Huadi International (HUDI) +12.63%
- Nouveau Monde Graphite (NMG) +11.44%
- Alto Ingredients (ALTO) +9.29%
- Maverix Metals (MMX)+7.71%
Here is a look at this week's top losers among basic material stocks ($300M market cap or more):
- 5E Advanced Materials (FEAM) -21.03%
- Benson Hill (BHIL) -19.72%
- Amyris (AMRS) -15.98%
- Nexa Resources (NEXA) -13.92%
- Intrepid Potash (IPI) -13.01%
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).