Industrial metals, including copper and zinc, have outperformed global stock markets this year as signs of renewed demand from Chinese producers have added to worries about shrinking global supply. Hopes for improved global demand this year have supported higher industrial metal prices. Traders have also welcomed the first signs of a rebound in demand from China, whose economic performance has slowed since it exited austerity Covid policies in December 2022. The latest China Purchasing Managers' Index, released at the end of March, showed an increase in factory activity in March for the first time since last September.
According to Iran Steel, copper has increased by almost 10% since the beginning of 2024 and reached the highest figure in the last 15 months, i.e. $9,523 per ton. The metal, which has a wide range of uses including in construction, power lines and electric vehicles, is widely regarded as a key measure of the health of the global economy.
Morgan Stanley now expects mined copper production to fall 0.7 percent this year. Meanwhile, Macquarie forecast that refined zinc production growth would decline by 0.4 percent. Also recently, the price of zinc increased by 0.8% and reached $2,756 per ton, the highest level since April 2023. Tin, aluminum and lead have also recently reached their highest levels in the past few months. Analysts say the renewed optimism in the metals market is largely due to China and its demand.
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