AFP, London :
China’s virus has roiled commodity markets as traders assess the epidemic’s economic impact on a nation heavily dependent on raw materials.
Base metals such as copper have in particular suffered since mid-January, while oil has recovered somewhat after heavy falls and haven investment gold has benefitted.
“Commodity prices, and energy prices in particular, have been hard hit by the outbreak of coronavirus in China and the prospect of lower global commodities demand,” said analyst Caroline Bain at Capital Economics research group.
“There is still too much uncertainty to factor the virus into our forecasts,” she added, as China delayed the release Friday of its latest trade data. Copper, considered a barometer of the economic cycle, has slumped almost ten percent since mid-January, when fears over the virus began to heavily influence direction of financial markets.
China is the world’s biggest importer of major commodities and has a voracious appetite in particular for base metals.
In line with most commodity and equity markets this week, copper has however managed a rebound to stand at $5,660 per tonne on Friday from $5,567 a week earlier.
Also since the middle of last month, aluminium remains 5.0 percent lower in value and tin 8.0 percent down despite their prices beginning to recover.
Sucden analyst Liz Grant said commodity prices are starting to fight back also after China on Thursday said it would halve tariffs on $75 billion worth of US imports.
China’s virus has roiled commodity markets as traders assess the epidemic’s economic impact on a nation heavily dependent on raw materials.
Base metals such as copper have in particular suffered since mid-January, while oil has recovered somewhat after heavy falls and haven investment gold has benefitted.
“Commodity prices, and energy prices in particular, have been hard hit by the outbreak of coronavirus in China and the prospect of lower global commodities demand,” said analyst Caroline Bain at Capital Economics research group.
“There is still too much uncertainty to factor the virus into our forecasts,” she added, as China delayed the release Friday of its latest trade data. Copper, considered a barometer of the economic cycle, has slumped almost ten percent since mid-January, when fears over the virus began to heavily influence direction of financial markets.
China is the world’s biggest importer of major commodities and has a voracious appetite in particular for base metals.
In line with most commodity and equity markets this week, copper has however managed a rebound to stand at $5,660 per tonne on Friday from $5,567 a week earlier.
Also since the middle of last month, aluminium remains 5.0 percent lower in value and tin 8.0 percent down despite their prices beginning to recover.
Sucden analyst Liz Grant said commodity prices are starting to fight back also after China on Thursday said it would halve tariffs on $75 billion worth of US imports.
