As China implements a series of monetary and fiscal stimulus measures, the global commodity market has experienced a significant rebound. Recently, the price of copper on the London Metal Exchange (LME) surpassed the $10,000 mark, while Singapore iron ore futures prices also rebounded to over $100, showing a recovery in market confidence.
In recent trading sessions, copper prices once climbed to $10,090, marking the highest level since June. Analysts attribute this surge mainly to China's easing of monetary policy and newly announced fiscal stimulus measures, anticipating a recovery in metal demand. Fu Xiao from BOC International stated: "The introduction of fiscal stimulus policies has boosted market confidence in economic recovery."
Meanwhile, prices of other major industrial metals on the LME also rose, with aluminum reaching $2,616.50, zinc touching $3,098, and lead reporting $2,136.50, reflecting strong market demand.
In the ferrous commodities sector, iron ore prices surged to $101.25, returning to the highest level in three weeks. This rise is closely related to the market's optimistic outlook on China's real estate sector. However, analysts also caution that if steel demand does not improve significantly, iron ore prices may face downward pressure.
The precious metals market was also stimulated, with spot silver prices rising to $32.71, the highest level since 2012. BOC International predicts that silver prices may continue to climb in the future, approaching $37.
Recently, the People's Bank of China further reduced the reserve requirement ratio and lowered the reverse repo rate to enhance market liquidity. These policies are aimed at addressing the challenges of economic slowdown and promoting economic recovery.
Overall, China's economic stimulus policies have not only injected vitality into the domestic market but have also had a positive impact on the global commodity market.
