Citigroup cuts copper forecast on tariffs risk, China outlook
The bank has cut its short-term outlook for copper prices by 11% to $8,500 a ton over the next three months.
The iron ore price rose on Monday buoyed by expectations that China would relax its strict covid-19 restrictions, lifting demand sentiment.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $110.61 a tonne Monday morning, up 3.4%.
Some communities in Chinese cities where covid-19 is still spreading are easing off on testing requirements and quarantine rules ahead of an expected shift in virus policies nationwide after widespread social unrest.
Meanwhile, China reported a slight dip in new daily covid-19 cases on December 1, the National Health Commission said.
Market sentiment has also been buoyed by China’s measures to support its struggling property sector.
These measures should have a better chance of developing into stronger demand for steel and iron ore amid a shift away from strict adherence to the zero-covid policy, ANZ said in a note.
China’s economy will keep growing at a reasonable speed with stable employment and prices, Finance Minister Liu Kun said in a speech at the ASEAN plus Three Economic Cooperation and Financial Stability Forum.
(With files from Reuters)
