The industrial metals theme continues to show no signs of abating. If you recall, we highlighted copper’s monthly all-time high breakout several weeks ago.
This week, aluminum reinforced the industrial metals uptrend by closing at a new 3.5-year high, broadening participation across the industrial metals complex, and reducing the risk that copper’s strength is an isolated signal.
Taken together, these synchronized breakouts potentially signal an improving economic backdrop, supporting the view that the resurgence in industrial metals is not a short-term phenomenon but a theme likely to persist in 2026.
Although the sample size is small, whenever aluminum closed at a 3.5-year high for the first time after a 2-year low, the industrial metal rallied over the subsequent 9 months without exception.
Notably, the S&P 500 also advanced in each case.
Each Chart of the Week highlights a theme, idea, or historic event that stood out to us. If you find it interesting, feel free to share it with friends or colleagues.
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Note: There will be no Chart of the Week published next week, as I will be out of town.
