Decline in Base Metal Prices Amid Rising Uncertainty Over Chinese Economic Measures
Here are the top metals news from Evest Online Trading Platform:
Content
Metal Prices
Decline in Metal Prices Amid Questions Over the Effectiveness of China’s Stimulus Package
Base metal prices, including copper and iron ore, have seen a notable decline as uncertainty grows regarding the potential impact of China’s unexpected economic stimulus package in achieving a strong recovery. The announcement, aimed at supporting China’s sluggish economy, has raised many questions among investors about the effectiveness of these measures, especially in the crucial real estate sector.
Copper fell below $9,800 per ton after two days of gains, driven by the Chinese stimulus package announcement. However, with a lack of further details regarding the measures, concerns have grown about whether these steps can alleviate deflationary pressures and stimulate demand for essential materials in sectors like infrastructure and real estate, both critical for metal consumption.
Political Risks
Political Risks Add to Economic Uncertainty
Citi Group mentioned in a note that there is caution regarding the short-term outlook for copper and other base metals, as it remains unclear whether these measures mark the beginning of a more comprehensive stimulus strategy or if they will have limited impact. The note also added that political risks in the United States are compounding the uncertainty, including concerns over a potential slowdown in the U.S. labor market and heightened tensions ahead of the presidential elections.
Market Movements Summary
Decline in Iron and Zinc Prices, Stability in Aluminum
Three-month copper futures fell 0.4% to $9,775.50 per ton on the London Metal Exchange at 11:29 a.m. Singapore time, after reaching their highest level since July. Citi Group has set a target price of $9,500 per ton for copper over the next three months. Zinc, nickel, and lead prices also saw declines, while aluminum prices remained stable.
As for iron ore, futures dropped 0.5% to $96.05 per ton in Singapore, after a significant rise of nearly 8% over Tuesday and Wednesday.
Decline in Base Metal Prices Amid Rising Uncertainty Over Chinese Economic Measures