Base Metals: Supply issues mount – ANZ

Base metals were stronger across the board as rising supply disruptions in the base metal markets should support prices for the moment, strategists at ANZ Bank apprise.

Key quotes

“Investors are switching their focus away from the demand destruction after several large operations in South American were forced to suspend operations.”

“Data showed demand in China is strong. Copper imports in Q1 were stronger than expected, rising by 9% ytd despite record plunge in industrial production.” 

“Tighter scrap regulations in China and restarts of business activities helped boost demand for imported metal.”