2023-06-23 05:49:14
Jeffries believes the happy days when China fueled demand for metals like copper, aluminum and iron ore are over.
Analysts led by Christopher Rafemina said in a note that long-term demand will be dominated by the United States and Europe as China faces declining populations and geopolitical challenges.
“For demand over the next decade, China is likely to be more of a headwind than a tailwind,” he said. He explained that the cycle was just beginning.
China, which has become Asia’s largest economy, has spent the past 20 to 30 years pushing hard to build infrastructure and support the metals market.
But China’s economic recovery has been slow since the coronavirus pandemic. It may lack the strength needed to boost global demand as it shifts to a domestic economy that is more focused on services.
Original title:The China-Driven Metals ‘Super Cycle’ Is Over, Jefferies Says (excerpt)
(Part of this article uses automatic translation)
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