2023-06-23 15:42:59
Metal prices are affected by the weak recovery of China’s economy
Asia’s largest economy has been a critical supporter of the mineral markets over the past two or three decades, as the country has rushed to build infrastructure. However, China’s slow post-virus recovery shows that it may lack the required capacity to support global demand as it transitions into a more services-focused economy.
This change was reflected in the markets this year, as the value of most metals declined even after Beijing abandoned its “zero Covid” policy at the end of last year.
Metals markets are facing a tough summer with declining demand in China
The price of iron ore fell 0.7% at 12:46 PM Singapore time to $110.85 on Friday, bringing its losses for the week to 2.3%. The steel industry staple gave up all of its gains from earlier in the year as optimism about China’s recovery faded.
Copper prices fell 0.5% to $8,534 a ton on the London Metal Exchange, and the main industrial crude was trading slightly higher than it was at the beginning of the year. Aluminum prices also fell by around 3% during the week, continuing their downward trajectory since late January.
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