Rio Tinto, Panguna stakeholders to address mine legacy impacts at roundtable
The Panguna Mine Legacy Impact Assessment is expected to be published later this month.
The copper price fell sharply again on Monday as China, responsible for more than 50% of the world’s copper consumption, struggles to control the deadly coronavirus outbreak.
Eight consecutive down days in New York saw copper for delivery in March losing 10.2% in value, falling to a more than 3-month low of $2.592 a pound ($5,715 a tonne) on the Comex market in New York. On the LME, copper suffered its longest losing streak in six years.
The Chinese government said ~6% growth target for 2019 “is likely non-negotiable”
BMO Capital said in a research note that the Beijing’s response to the outbreak, assuming it can be brought under control, could be significant.
The investment bank believes the Chinese government ~6% growth target for 2019 “is likely non-negotiable in order to meet the doubling of per capita GDP promised by President Xi in 2020 versus 2010”:
And with consumption weaker, this will likely involve more fixed asset investment-heavy government spending.
As a result, we may see another push into infrastructure projects into mid-year, while property restrictions could be further eased.
For metals and bulk commodity demand, we see a slightly weaker Feb-March than may have been anticipated, but limited changes to expectations for the year as a whole.
Other industrial metals, where China’s dominance is even more pronounced, were also trading down on Monday. Nickel fell 2.8% to $12,615 a tonne, the lowest level since early July while zinc prices gave up more than 4% to a one-month low of $2,240 a tonne.
