As concerns grow about the post-pandemic recovery of China’s economy, investors are closely watching the industrial and infrastructure-related metals market. Data showing a slowdown in industrial production and a cooling of investments in metal-intensive fixed assets has sparked varied perspectives among experts.
Carsten Menke, Head of Next Generation Research at Julius Baer, highlighted the cautious outlook for iron ore, which is heavily exposed to the real estate market. On the other hand, Menke remains constructive regarding copper, driven by hopes of a global industrial recovery. However, steel prices in the Chinese market are at their lowest levels in seven years, with little expectation for a change in the near future.
Despite the recent correction in copper prices, Menke maintains a long-term positive view, but notes that prices are likely to stay within limits until there is concrete evidence of a global industrial recovery. The lack of evidence for an industrial recovery has kept prices range-bound for many commodities.
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