Weaker metal demand from China is expected to affect the local mining industry, which has been the Mainland’s chief supplier when it came to nickel ore.
According to a report by the World Bank entitled “Commodity Markets Outlook,” there is a possibility for the booming Chinese economy’s consumption of metal to flatline as it limits its output and exports due to tighter environmental policies.
Moreover, the shift of that country’s focus from manufacturing to services might bring demand for steel in particular to dip. For the last 15 years, the World Bank said China has accounted for the bulk of global growth in the consumption of metals as it continued to grow its red-hot economy.
Nonetheless, metal prices are projected to ease slightly this year following an estimated 22-percent rise. Minerals like copper and nickel are seen to increase by 1.12 percent and 4.54 percent, respectively, to $6,050 a metric ton (MT) and $10,559 a MT, respectively.
“A 10-percent decline in ore prices will also be offset by increases in all base metals prices, particularly for lead, nickel and zinc due to mine supply tightness,” the report said.
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