There are times when market action isn’t tough to figure out and the recent rally in base metals is one of those times.
For all the talk of the lithium, nickel and magnesium that would be needed during a surge in electric vehicles, broader metals prices continue to be driven primarily by Chinese imports and also by rising global manufacturing activity.
The catch is that forecasts for the Chinese economy imply the rally could be short-lived. China’s dominance in global commodity markets is highlighted by the fact the country consumes half of the global supply of copper and coal produced each year. Continue Reading →