In today’s briefing:
- Iron Ore Tracker (21-Oct-2024): China Positive Sentiment Waning
- Copper Tracker Oct 21st, 2024: The China Malaise Sets In
Iron Ore Tracker (21-Oct-2024): China Positive Sentiment Waning
- After a brief spell of iron ore prices rising to 108 USD/ton, prices have retraced to 102 USD/ton (-3% WoW) but remain broadly in the 95-130 USD/ton band.
- Investors were disappointed with China’s announced stimulus measures, citing their vagueness and lack of a specific timetable, resulting in the positive sentiment waning over the last two weeks.
- We update investors on Vale’s (VALE US) recent proposal to the government to settle the Mariana Dam disaster.
Copper Tracker Oct 21st, 2024: The China Malaise Sets In
- Copper prices were down slightly, WoW, by 0.3% YoY, as the effect of China’s stimulus plan announcements waned, with investors viewing them more skeptically.
- With 58% of the metal’s demand arising from China, we expect the short-term malaise to be felt unless China makes punchier fiscal stimulus announcements soon.
- We believe high-quality equities like Southern Copper (SCCO US) and Ivanhoe Mines (IVN CN) will continue to be resilient and prefer exposure to copper in those names.
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