Yves here. As if lower commodity prices were a bad thing…And lumber prices have already started to soften. Too many forget that the then less hefty China was a big driver of the 2007-2008 commodities boom and bust.
By Tsvetana Paraskova, a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. Originally published at OilPrice
One of the biggest drivers of the surge in metals prices this year, the world’s top commodity consumer China, is showing signs of a slowdown in demand, which could drag down copper and iron ore prices for the rest of the year after a blistering rally in the first half.
China s Industrial Slowdown Could Kill The Commodity Rally oilprice.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from oilprice.com Daily Mail and Mail on Sunday newspapers.
Despite dropping to month’s low, copper seen ruling firm this year
May 24, 2021
Prices drop as China finds current spike ‘unreasonable’, speculators cut long positions
Copper prices rose to a record $10,724.5 a tonne on May 10 before dropping 6.5 per cent to $10,027.50 during the weekend but this declining trend may not last for long.
Analysts see copper ruling firm or heading up a little more during the later part of this year, particularly once the Covid-19 pandemic subsides in Europe.
On Monday, copper prices were near a month’s low after China said it will manage its commodity supply and demand to control any unreasonable increase in prices.