Still, in the long term, there is a likelihood that prices will likely bounce back in the next few months as supplies remain tight. These numbers signal that the country is facing a K-shaped recovery, where the manufacturing and services sectors diverge. Data published last week showed that the country’s manufacturing PMI dropped to 48.8 in May, signaling that factory output is falling. Analysts believe that the country’s demand will be about 16.13 million tonnes this year.Ĭopper demand has been under pressure this year as evidenced by the recent manufacturing PMI numbers. Still, it is unclear whether the new measures will be effective.Ĭhina is an important country for the copper market since it is the biggest consumer of the metal. Estimates are that the real estate industry and its value chain account for more than two-thirds of the economy. The government hopes to revive the sector, which is the most crucial in the economy. Some of the new measures include reducing downpayments in some cities and changing some of the commissions. As I wrote in this article, Beijing is considering delivering more stimulus for the real estate sector. China real estate stimulusĬopper, often seen as a barometer of the global economy, has moved sideways in the past few days. It has crashed by over 25% from the highest level in 2022. Copper remains sharply lower than its highest level in 2022. It jumped to a high of $3.70, higher than this week’s low of $3.56. Copper price drifted upwards this week as investors cheered a potential comeback of Chinese demand.
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