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China Stimulus Unlikely to Reverse Global Metals Meltdown

  • Missing property boom means demand boost lacks power
  • Prices of metals continue tumbling on global recession fears
Updated on

Commodity investors looking to China to reverse the rout in global metals markets may be disappointed, with Beijing unable to deliver the kind of investment splurge that powered past bull markets.

Base metals had their worst quarter since 2008 in the three months to June, and the retreat deepened in July. Copper plunged briefly below $7,500 a ton in intraday trading last week, its lowest since late 2020, and is down about 29% from a March record. Iron ore is down about a third from its highest this year, and aluminum is about 40% lower.