Reduction of metal prices in the shadow of china’s central bank

For the first time in 2 years china has reduced the bank profits which is an important sign showing the government need in low economic growth.
This shows concerns of China’s financial system and has been reflected in banks approach.
China’s central bank has increased the short term interest rate by 10 points or 0.1% and signaled the market that it’s looking for a restrictive policy in the New Year.
In markets rapid response, steel price reduced by 5.3%, zinc price reduced by 2.4% and copper reduced by 1.1% and the growth of the past week was destroyed.

Iron ore prices reduced by 4.1% in the physical market transactions at Chinese ports and was priced 19.82$ per ton. Trading volume was low and many merchants have chosen Monday, February 6 as the starting day of trading.
Analysts expect growth in demand of Monday’s trading because the Chinese steelmakers require purchasing and storage after the holidays and this is an opportunity for the traders.

Publuish Date : 2017/02/03