Copper and iron ore are rallying as China reopens its vast economy, with benchmark copper prices passing $9,000 per tonne on Wednesday for the first time since June.
The end of Covid-19 restrictions in China — the world’s largest consumer of commodities — has triggered a jump in a range of metals exposed to the Chinese property sector such as copper, steel and aluminium, although some analysts and traders expect these gains may not be sustained throughout the year.
“We are expecting a rapid rebound in China’s economy,” said Caroline Bain, commodities economist at Capital Economics. “As momentum gathers in China’s economy and as the prospect of Fed loosening becomes a reality later in the year, we think commodity prices are in for quite a positive period, meaning higher prices by the end of the year.”