Market news
19.05.2022, 06:25

Outlook for base metals remains positive as China boosts stimulus – ANZ

Base metals have come under pressure in recent months. However, China’s credit impulse is set to support base metals demand, economists at ANZ Bank report.

Pedal to the metal

“Fiscal stimulus measures and ongoing supply-side issues should see metals markets tighten in the second half of 2022.”

“China is loosening fiscal and monetary policies. More importantly, the NDRC released the country’s latest energy system plan, which re-emphasised China’s determination to boost the development of renewable energy, which are key growth engines for metals demand.”

“Labour shortages and high energy costs will continue to weigh on growth in copper, aluminium and nickel supply. This is aside from the disruption that the Russia-Ukraine war will eventually have on Russian metals supplies. For the moment, sentiment is likely to remain weak.”

“The prospect of a rebound in demand in China, amid falling inventories, is unlikely to keep downward pressure on metals prices for long.”

 

© 2000-2022. All rights reserved.

This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Feedback
Live Chat E-mail
Up
Choose your language / location