The price of copper and iron ore continued to fall this week, as Wall Street banks downgraded China’s economy. TradingView data shows that iron ore prices have fallen to $91.95, their lowest level since November 2022 and over 36% below the highest levels this year.
Copper has also had a bad year, with its price plummeting to $4.07 – a 21% drop from the highest point of this year. Platinum, used in jewelry and catalytic convertors, has dropped by more than 17% since its year-to date high. Palladium is down from $2,000 to $930.
Due to its economic role, gold is the only metal doing well. Gold is a precious material that can be used to protect against inflation. Copper and iron ore, on the other hand, are industrial metals.
said:
One company cannot win by itself. “China is a huge competitor and the government should step in to support companies.”
noted:
We expect that weaker property activity will have a greater drag on the economy overall than previously expected, especially through household consumption.
One company cannot win by itself. “China is a huge competitor and the government should step in to support companies.”
We expect that weaker property activity will have a greater drag on the economy overall than previously expected, especially through household consumption.
Other prominent analysts have also reduced their Chinese forecasts. Barclays’ target has been reduced to 4,8%, while Goldman expects an economy growth of 4.9%.
The 2010 budget is down to $10,000 from the 2015 level of $15,000.
Copper’s decline has surprised many analysts. Jeff Currie, a top commodity analyst, recently stated that copper was one of his largest bets. Citigroup analysts said that copper is starting its second bull market.
As demand has declined, these analysts have also cut their forecasts for iron ore prices. Recently, for example, the manufacturing PMI in Europe and America has been weak.
Mining companies are scrambling for alternative income sources due to the ongoing slowdown in China, and the falling prices.
BHP Global, the leading iron ore company, bid $45 billion for Anglo American. Anglo American is a copper-rich company.
Rumours suggest that Rio Tinto plans to make a large acquisition, most likely Teck Resources, in order to diversify their business.
Glencore, the world’s largest copper producer, also said it would not exit its coal business. It now considers this to be an integral part of its operation.
Updates may occur to the post “Why Iron ore and Copper Prices are Plummeting”.
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