Metals Demand Remains Soft

According to BMO Capital Markets, as reported by Mining.com, metals demand in the global industrial economy has been sluggish since November, despite rising prices and manufacturing expansion. Despite over half of major economies showing manufacturing expansion, metals purchasing by end users hasn't followed suit. Chinese construction, a key source of steel and base metals consumption, has been declining, contributing to tepid demand. Meanwhile, metal prices are high due to tight supplies rather than strong demand. Copper and zinc prices have risen significantly, with copper up about 50% to $5.89 per lb and zinc growing about 15% to $1.52 per pound. The auto sector, however, has shown strong activity, with light-vehicle sales reaching 91.7 million units, potentially indicating a trend for renewed metal demand.