- Materials-related stocks took a hit this week following the US Federal Reserve's latest policy update accelerating its interest hike forecast and upgrading inflation expectations.
- In the past 5 day trading session, iShares U.S. Basic Materials ETF (NYSEARCA:IYM) and Materials Select Sector SPDR ETF (NYSEARCA:XLB) fell -4.81% and -4.35%, respectively.
- Copper prices plunged to their lowest in two months, while future prices for platinum and palladium were down ~7% and more than 11%, respectively.
- U.S. lumber futures too has been on a losing streak, logging its biggest–ever weekly drop in the previous week, with prices in Chicago down 18%. Lumber prices have fallen around 40% since May's record high of over $1,700 per thousand board feet and are expected to slide even further as supply catches up with demand.
- For the week ending June 18, 2021, Perpetua Resources (NASDAQ:PPTA) +6.39% became the biggest gainer among the Basic Materials sector (of stocks with a market cap of $300M+). The company was included to the Russell 2000 Index and the broad-market Russell 3000 Index this week. It is currently in the process of approval for America's only mined source of antimony. On May 3, PPTA entered into a deal with United States Antimony Corporation to study the potential for processing the Stibnite Gold Project's antimony concentrate at the latter’s processing facilities.
- Other top performing basic materials stocks for this week include: PolyMet Mining (NYSE:PLM): +5.90%; Avantor (NYSE:AVTR): +4.84%; Grupo Simec (NYSE:SIM): +3.89%; Amyris (NASDAQ:AMRS): +0.57%.
- Copper producer Taseko Mines (NYSE:TGB) -19.67% was the biggest loser among Basic Materials stocks ($300M market cap or more) for this week.
- Gold mining companies, also hurt by the Federal Reserve's policy update, made up rest of the losers among Basic Materials stocks: Kinross Gold (NYSE:KGC) -16.73%; Nexa Resources (NYSE:NEXA) -16.33%; DRDGOLD (NYSE:DRD) -12.25%; Gold Fields (NYSE:GFI) -12.12%.
- Few other materials ETFs to watch: iShares Global Timber & Forestry ETF (NASDAQ:WOOD), Materials Select Sector SPDR ETF, Vanguard Materials ETF (NYSEARCA:VAW), iShares Global Materials ETF (NYSEARCA:MXI), SPDR S&P Metals and Mining ETF (NYSEARCA:XME),VanEck Vectors Gold Miners ETF (NYSEARCA:GDX), iShares MSCI Global Gold Miners ETF (NASDAQ:RING), Global X Copper Miners ETF (NYSEARCA:COPX).