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.