Communist Party Congress in China: No positive impulses for the metals markets

The Communist Party Congress in China did not bring any positive impulses for the industrial metals markets. By and large, the status quo was confirmed. Both the zero-covid strategy is likely to continue as well as the restraint in stimulating the economy, which means that demand concerns in the market are likely to persist. Accordingly, the LMEX index is trading only about 3% above its low for the year.

After important economic data releases from China, such as for foreign trade or GDP, were postponed without giving a reason, pessimism is likely to continue for the time being and prices will tend to remain under pressure.

Source: Commerzbank Research, Photo: Fotolia