Materials Up Ahead of Fed - Materials Roundup
Shares of miners and other commodities producers ticked up as traders bet a Federal Reserve statement Wednesday will support the prices of risky assets. Most observers expect the central bank to raise interest rates for the first time since the summer, but any indication that the Fed is wavering on subsequent increases could boost the price of copper, gold and other rate-sensitive raw materials. The market for paper products in China is heating up, according to one brokerage. "Box manufacturers have started inventory restocking over the past week and expected ex-factory prices should continue to increase, as we are in the traditional peak season," said analysts at brokerage Nomura Securities, in a research note. "Government policy is the key to the industry's future development, with potentially much stricter policy on recovered paper imports, environmental protection measures on existing and new capacity." While some companies have turned to alternative packing materials because of the rising cost of paper-based packaging, the price increases are likely to continue, according to the brokerage.
-Rob Curran, rob.curran@dowjones.com
(END) Dow Jones Newswires
December 12, 2017 16:10 ET (21:10 GMT)