Industrial metal prices touched new lows of several years on Friday, with copper and zinc at their weakest levels in more than three years, in fear of a coronavirus pandemic that would further erode the demand for basic inputs.
The copper to three months in the London Metal Exchange (LME) lost 0.53% to US $ 5,583.50 a ton (1153 GMT), after having yielded 1% on the eve.
The prices of the metal used as a measure of economic health fell on Wednesday to US $ 5,574.5 a ton, its lowest level since February 4, and accumulate a decline of more than 10% since mid-January.
In that sense, although the situation in China is stabilizing, the demand for the construction industry has not picked up enough, he said. Xiao Fu, head of market strategies for Bank of China International. “The winds against the prices of basic metals could persist in the short term”he indicated.
And he added that there is a double impact on raw material prices, “One comes from risk aversion and the other from market fundamentals, the slow resumption of construction in China“.
The zinc to three months in the LME initially lost up to 2.1% at US $ 1,970.50 a ton, an apartment not seen since 2016, but later cut losses to 0.3%, quoting at US $ 2,006 a ton.
Among others industrial metals, the aluminum touched a minimum of 40 months of US $ 1,665 a ton, before cutting losses to 0.6% and trading at US $ 1,679.50.
Coronavirus Impact
Countries on three continents on Friday reported their first cases of the coronavirus, while the world was preparing for a global epidemic and investors were getting rid of the actions in the face of a marked aversion to risk assets.
In China continental, the world’s largest consumer of metals, 327 new cases were reported, the lowest figure since January 23, which led to more than 78,800 the number of infections. Some 2,800 people have died in the country.
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