COMMENT: Anglo’s 260% rebound marks return of big money to metals markets

Three months ago, Anglo American was in a dark place. Its shares were trading at a record low, the yields on its bonds were soaring, and it was on the verge of being removed from the FTSE 100 index. The markets it is active in were looking plenty gloomy too.

But since that grim start to the year, the company has seen an astounding reversal of fortune, with its shares rebounding by 260%, principally due to a similarly eyebrow-raising 75% jump in the price of iron ore, as tracked by the Metal Bulletin Iron Ore Index. 

In the physical markets, the velocity of the rebound in both bulk commodity prices and the valuations of the miners that produce them has caused no shortage of confusion, and even the miners themselves are warning that the rally looks shaky from...


Mark Burton

April 24, 2016

15:00 GMT