Supportive policies from ECB, BoJ, Chinese economy to spur base metals demand

摘要

The base metals complex has been pressured in the past few months on concerns over Federal Reserve's tapering of the bond buying program which could squeeze liquidity conditions globally and hurt investor's appetite for riskier assets like base metals. Prices could further correct once Fed announces the withdrawal of stimulus, but improving global economic outlook and supportive monetary policies by the ECB and BOJ along with improvements in Chinese economy are likely to boost the demand for industrial metals in the coming months, especially copper.