Big conferences often crystalize the prevailing sentiment in markets. So it’s probably no coincidence that copper has dived below $8 000 a ton and iron ore is trading south of $100 after metals luminaries gathered in Hong Kong and Singapore to chew over the parlous state of global demand and China’s recovery.
It could be a grueling few months for raw materials that rely on the old economy. China’s building spree that usually takes place in the second quarter has underwhelmed and will soon be replaced by the doldrums of summer. Its manufacturing sector is already there. The world economy is flirting with recession. Rising interest rates and a stronger dollar hover like the proverbial sword over commodities priced in the greenback.