LME WEEK 2020: Global recovery rates will define base metals landscape - panelists

Post-pandemic market dynamics for base metals will be defined by global economies’ ability to recover from the fallout of Covid-19, panelists said during LME Week’s China session on Thursday October 22.

Panel consensus deemed China’s economic growth responsible for the current recovery in the metals market, with London Metal Exchange China head Yang Liu alluding to the region’s “very beautiful v-shaped recovery.”
Some industry analysts are skeptical of this growth however, believing that the V shaped rebound recovery is coming from a low base.
"The growth we are seeing in China is only possible because recent economic numbers are all coming from a very depressed, low levels. Therefore, sustainability in the months ahead will weigh in investors’ minds if ex-China demand remains tepid," Fastmarkets research analyst Andy Farida said.
Nonetheless, the first virus case in the country was traceable to November 17, 2019, and almost a year later it is reporting impressive data for a country that has weathered a pandemic.
And this perceived recovery is manifesting in improved demand for LME base metals and higher prices.

“Right now...

Published

Amy Hinton

October 23, 2020

17:09 GMT

London