Metals are becoming cheaper amid falling demand in China and the outlook for the global economy
Metal prices are falling, with copper and most others showing negative trends on Wednesday, nasdaq.com reported. Investors are worried about demand contraction in China, which showed weak economic statistics in April. Add to that the poor results in the U.S., as well as the effect of restrictive measures in China - according to Saxo Bank analyst Ole Hansen, market participants are afraid that as a result, the slowdown in global economic growth may be sharper than expected. The level of demand for metals in China declined from March to April. Now the country is focused on exports - this year their sales abroad have increased significantly, both in terms of raw materials (including aluminum, lead and zinc) and billets. Imports, on the contrary, declined. This dynamic is partly due to low domestic demand. However, Bank of America forecasts growth of demand for metals in China in the second half of the year, when it is expected to lift the current coronavirus restrictions and introduction of economic incentives.