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China Property Slowdown Expected to Hurt Metals Already Hit by Trade War

  • Trade war, stronger dollar, yuan’s slump add to demand concern
  • Nickel outlook bullish on stainless steel, EV sector
Operations At A Copper Refinery And Smelter Facility As Peru Post Biggest Trade Surplus In Years
Photographer: Dado Galdieri/Bloomberg

China’s property slowdown is set to further weaken metals demand that’s already been hit by a trade war with the U.S. and a stronger dollar, sending prices toward their first annual loss in three years, according to a unit of GMK Holdings Co., which owns the country’s largest private copper smelter.

“Expectations on the macro side have worsened a lot from the mid-year,” said Jiang Hang, head of commodity investment research at GM Corporation Ltd. “The current downturn in property sales will be an issue for a rather long time. That will also make front-end investment slow down gradually.” GM is an investment unit of GMK, which owns the Xiangguang copper plant in Shandong.