On Wednesday, the 4th of March 2020, a number of industry-grade metal futures’ prices including copper had snapped a coronavirus-led losing streak, as traders seemed to have digested US Fed’s latest emergency move to slash key interest rate by 50bps positively, nonetheless, lingering worries of supply chain disruption alongside an upscaled demand rout had kept a lid on the gains.
In point of fact, in a bid to insulate the US economy from an inevitable recession amid a rapidly spreading virus outbreak, US Fed had unanimously decided to slash interest rate by 50bps, while optimisms over similar measures from global economic majors had momentarily overshadowed the financial repercussions of the virus outbreak alongside a decade low factory activity PMI (Purchasing Managers’ Index) index of 35.7 in China last month.
Meanwhile, hinting that the industrial metals’ Wednesday’s (March 4th) would more likely to be short-lived, an ED&F Man analyst Edward Meir wrote in a client note, “The current situation is worryingly unique, because unlike the SARS episode of 2002-2003, the world is considerably more integrated.
This outbreak seems to be more widespread as well. More importantly, unlike 2003, China is now an economic powerhouse and a key link in the global supply chain, as is South Korea to a more limited extent. ” Citing statistics, on Wednesday’s (March 4th) commodity market closure in London metal exchange, benchmark copper futures’ prices rose by 0.3 per cent to $5,684 per ton, three-month aluminium futures’ prices gained 0.2 per cent to $1,726 a ton and aluminium futures’ prices due to expired on December 21st were trading at $1848 per ton.
Besides, among other industry-grade metals, zinc futures’ prices rose by 0.3 per cent to $1,982.00 per ton, tin gained 1 per cent to $16.925 a ton, while nickel futures’ prices added 0.9 per cent to wrap up the day at $12,680 per ton.