CA - Industrial Metals Monthly: Why Copper And Iron Ore Prices Are Diverging

2024-04-08 14:20:00 ET

Summary

• The slump in iron ore prices is in stark contrast to copper’s extraordinary rise.
• In this edition, we look at just what’s driving the divergence.
• Last year, rising demand for renewables and EVs in China already offset the slump from the more traditional sectors like the property market, and we expect this shift in demand drivers to continue this year.

By Ewa Manthey

YTD metals performance %

Copper and iron ore prices are diverging

Prices of copper and iron ore diverging quickly with copper prices surging above $9,000/t, while iron ore is trading closer to the $100/t level. China’s concerns over the ongoing property crisis have weighed on the iron ore market, while copper benefits from rising demand for electric vehicles (EVs) and renewable energy....

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