Sweet and sour taste base metals price recovery
The sudden drop in demand in the copper, nickel and zinc markets due to the Covid-19 pandemic quickly put an end to supply problems. Overnight, the focus shifted to overproduction and higher stocks. For the time being, surpluses are the new normal, while the global demand outlook for base metals remains bleak. However, the improving economy in China and the support from central banks has fuelled positive sentiment in the market and among investors, which is currently giving prices some support
Support from central banks fosters recovery in base metals prices
Cautiously positive economic trends in China restore investors’ courage
More optimism among copper buyers in China
Abrupt demand cuts and few production cutbacks result in higher stocks
Premiums for direct delivery of copper and nickel have increased in China