Base metals supercycle remains intact

(http://ft.com/markets/)

The recent strength of base metal prices has confounded the sceptics. Lead, zinc and nickel have all hit all record levels while tin has surged to its highest level since 1989. Such gains have defied the forecasts of many investors who believed that the peak in the cycle for metal prices had passed.

US oil prices have declined by a quarter since early August but base metals have largely resisted crude’s gravitational influence, displaying unexpected price resilience in the face of a US economic slowdown and concerns about its impact on global demand growth.