Market tries to reconcile robust demand numbers from China and worrying action by the US
Steel and copper price gains are not that surprising as they indicate that China’s economy remains in a healthy state
Launceston, Australia — The tug-of-war between fundamentals and sentiment appears to be getting stronger for many commodities as the market tries to reconcile factors such as robust demand numbers from China and increasingly worrying rhetoric and actions from the US. Iron ore, steel and copper all performed well on Wednesday after Chinese data showed real-estate investment and industrial output rising at a faster than expected pace. Spot iron ore prices in China rose 2.7% to close at $71.64 a tonne, while London-traded copper futures gained 0.6% to $6,988.50 a tonne. China’s real-estate investment over the first two months of the year grew 9.9% from the same period a year ago, marking the fastest pace since 2015. Industrial output in the January to February period gained 7.2% from the same period in 2017, beating the market consensus forecast of a rise of 6.1% and coming in well above December’s 6.2% growth rate. Given that property and industry are among the major consumers of comm...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.