Mining stocks plunge on US recession fears and falling Chinese demand
US monetary tightening, soft European data and Beijing’s Covid-19 rules are hitting metals
SA mining stocks have fallen by as much as a fifth in the past month in response to fears about the US slipping into a recession on the back of high inflation, tougher interest rates and weakening demand out of China, the world’s largest buyer of iron ore and copper.
But when prices peak before long slides it does not mean metal prices have reached the top of the commodity cycle. Sentiment could change quickly if the war in Ukraine ends or China relaxes its lockdowns and factory closures, and if US and UK interest rates hikes bring inflation under control, say analysts. ..