Investing.com – The weakness of the Chinese economy’s post-pandemic recovery remains on investors’ radar, especially in the industrial and infrastructure-related metals market. With data pointing to a slowdown in industrial production and a cooling of investment in metal-intensive fixed assets, the prospects are diverse, Julius Baer pointed out in a note sent to clients and the market on Tuesday.
“We are cautious on , which is more exposed to the real estate market, and constructive on , although prices are likely to remain within a certain range as evidence of an industrial recovery is lacking,” said Carsten Menke, head of Next Generation Research . with Julius Baer.
Iron ore prices appear to have “lost their premium to stimulus hopes,” Menke added, reinforcing unchanged views on these commodities. Meanwhile, steel prices on the Chinese market are at the lowest level in the past seven years, and the specialist of the Swiss group sees no change in this scenario for the time being.
Copper, on the other hand, is driven by hopes for a global industrial recovery, and the recent correction is seen as a “cooling of the overly optimistic market environment,” said Menke, who has a constructive long-term outlook for prices. However, he said prices “must remain contained as evidence of a global industrial recovery is not increasing.”
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