The material sector closed this trading week in green, with S&P 500 Materials registering 2.53% gain and the Materials Select Sector SPDR ETF (NYSEARCA:XLB) up 2.07%.
Iron ore prices fell over 8% on Monday as steel mills idled blast furnaces due to growing pessimism over the demand outlook in China. In the spot market, benchmark 62%-grade iron ore bound for China (TIOC:COM) plunged $10 to $115.50/ton - the lowest since mid-December. Iron ore futures (SCO:COM) closed at $116.50/ton on Friday, down ~7% for the week. Last week, iron ore futures marked their steepest weekly drop since February.
Benchmark copper (HG1:COM) on the LME tumbled to a 16-month low on Thursday, -1.9% at $8,603/ton after touching $8,564.50; prices are down over 20% from a record high of $10,845 in March. The red metal registered its biggest weekly fall in a year, down ~7%, as investors worried that central bank rate hikes could restrain global economic growth and cut demand for metals.
Other industrial metals also registered sharp weekly declines, with nickel down ~13% this week and tin 25%, marking its biggest weekly fall since at least 2005.
Take a look at this week's top gainers among basic material stocks ($300M market cap or more):
- Danimer Scientific (DNMR) +35.42%
- Amyris (AMRS) +20.42%
- Polymet Mining (PLM) +16.60%
- Standard Lithium (SLI) +14.88%
- Perpetua Resources (PPTA) +8.83%
A look at the week's top decliners among basic material stocks ($300M market cap or more):
- 5E Advanced Materials (FEAM) -27.99%
- Piedmont Lithium (PLL) -21.32%
- LSB Industries (LXU) -20.89%
- Sylvamo (SLVM) -20.02%
- Century Aluminum (CENX) -19.88%
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).