What does the PBOC’s dovish shift mean for metal prices? Tony Sycamore July 13, 2021 2:15 AM Fiscal, stimulus, ultra-low interest rates, global infrastructure projects as well as inflation fears propelled metal prices higher. In this article, we will review what comes next for key metal prices following last week's dovish shift by the PBOC. Share: China overview: Events in China play a critical role in determining the price of base metals, both in the short term and the long term. This is because China accounts for 50-60% of base metals demand and around 73% of the world's iron ore imports. China’s credit impulse turned negative towards the end of 2020 as policymakers emphasised the need for more “prudent” policy and to minimise financial risks. The slowdown in credit momentum along with officials “jawboning” lower commodity prices has reduced demand and a moderation of key metal prices, more noticeable since mid-May.