Industrial metals, including copper and zinc, rose following Chinese banks’ decision to lower their benchmark lending rates. The move is part of Beijing’s broader efforts to support the nation’s economy and meet growth targets for the year.
The rate cuts, which were larger than economists had anticipated, came after the central bank reduced its key policy rate in September. China’s top leadership had called for lower interest rates and stronger measures to support the struggling property market, a critical source of demand for metals like steel, copper, and zinc.
Industrial commodities have experienced significant volatility in recent weeks as investors reacted to a wave of Chinese government announcements aimed at revitalizing the economy and achieving a 5% growth target for 2023. Initially, iron ore and copper surged on hopes of stronger government intervention, but gains were later pared amid concerns over the effectiveness of these measures.
By 11:57 a.m. local time on the London Metal Exchange, copper had risen 0.8% to $9,700.50 per ton. Zinc climbed 1%, and aluminum gained 0.3%. Steelmaking ingredient iron ore also saw an increase, rising as much as 1.7% to $103.45 per ton on the Singapore Exchange, though it later settled at $101.90.
