Copper: Chinese companies want to increase metal exports – Commerzbank
|According to Bloomberg reports, Chinese smelters are taking advantage of the current high world market prices and want to increase their exports, which is likely to have contributed to the recent decline in Copper and Zinc prices, Commerzbank's Head of FX and Commodity Research Thu Lan Nguyen notes.
Prices stay elevated, pressuring Copper and Zinc
"This makes sense in view of the robust metal production to date and the emerging weakness in domestic demand. We reported on Tuesday that Chinese exports of unwrought Copper and Copper products in the first eight months of this year were already 13% above the previous year's level."
"The situation is different for exports of Zinc concentrate. Exports for the same period are almost 20% below the previous year's level. The last time there were significant exports was in 2022, when smelters outside China were forced to cut production due to the energy price shock."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.