- Write by:
-
Friday, June 23, 2023 - 23:57:05
-
192 Visit
-
Print
Mining News Pro - The halcyon days of China underpinning demand for metals like copper, aluminum and iron ore are over, according to Jefferies LLC.
With China facing a falling population and geopolitical challenges, longer-term demand will now be dominated by the US and Europe, Jefferies analysts led by Christopher LaFemina said in a note.
“China is more likely to be a headwind than a tailwind for demand over the next decade,” they said. The China super cycle, driven by urbanization and industrialization, is over, and the energy transition and decarbonization cycle has just begun, the analysts said.
Asia’s largest economy has been a crucial support for metals markets over the last two to three decades as the country went on an infrastructure-building binge. However, China’s plodding post-virus recovery shows it may lack the horsepower required to buoy global demand as it transitions to a more service-oriented economy.
That dynamic has been reflected in markets this year, with most metals falling even after Beijing abandoned its Covid Zero policy at the end of last year.
Iron ore declined 0.7% at 12:46 p.m. Singapore time to $110.85 on Friday and was down 2.3% for the week. The steel-making staple has now wiped out all of its gains from earlier in the year as optimism about China’s recovery faded.
Copper fell 0.5% to $8,534 a ton on the London Metal Exchange, with the key industrial bellwether trading slightly higher than where it was at the start of the year. Aluminum was down around 3% for the week, and has been on a downward trend since late January.
Short Link:
https://www.miningnews.ir/En/News/623068
Jiang Weiping, the founder of major Chinese lithium producer Tianqi Lithium Corp., resigned as chairman after the ...
BHP Group can’t cherry pick Anglo American assets without paying a hefty premium, Anglo investors told Reuters, ...
Anglo American faced calls from shareholders on Monday to detail plans for improving its value in order to fend off ...
Copper slipped after initially extending gains above $10,200 a ton as traders turned their attention to demand ...
BHP Group Ltd.’s proposal for Anglo American Plc to spin off platinum and iron ore units before a takeover would likely ...
Glencore expects profit at its trading division this year to be at the top end of its long-term annual guidance, in an ...
Iron ore will average more than $100 a ton this year as the worldwide market remains tight, despite China’s property ...
Iron ore futures prices fell on Monday after weak industrial data in top consumer China and the completion of of ...
Top copper producer Codelco reported a decline in quarterly output due to lower quality ore at its aging Chilean mines — ...
No comments have been posted yet ...