Industrial metals are witnessing a decline due to several factors, including the Federal Reserve’s anticipation of maintaining a tight monetary policy and growing risk-averse sentiment in the lead-up to China’s Golden Week. This combination is contributing to the pressure on copper prices.
The London Metal Exchange has seen relatively stable prices for copper, nickel, and aluminum, but iron ore futures in Singapore experienced a drop on Thursday. The upcoming holiday in China is expected to slow down domestic consumer demand, which could have implications for the metals market.
Alongside the holiday slowdown, concerns about China’s housing market slump and the suspension of trading in China Evergrande Group’s shares in Hong Kong are adding significant risks to Beijing’s economic outlook and its demand for metals.
The current environment is characterized by uncertainty for industrial metals, with various factors, including the Federal Reserve’s monetary policy, the impact of China’s Golden Week, and challenges in the housing market, all contributing to the evolving market dynamics.
