Fitch Solutions Anticipates Volatility in Metals Market

SEATTLE (Scrap Monster): The latest industry report published by Fitch Solutions noted that the Chinese economic data is likely to stoke volatility in metal markets, both from a price or actual trade flow perspective.

Fitch noted that the slowdown in operations and falling metal prices on account of Covid-19 pandemic cast a shadow on mineral production growth by the Asian region in 2020. However, the worst times are over and the mineral production is likely to report recovery during the current year, primarily led by China. Accordingly, the mining industry value growth, which contracted by 3.4% in 2020, is expected to record marginal growth by 1.8% over the prior year in 2021.

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The Chinese economy has registered a strong v-shaped recovery since the second half of 2020. The government stimulus measures are likely to give new life to infrastructure projects, which in turn will boost the demand for metals. The non-ferrous metals including aluminum and copper are likely to fare better in 2021.

Meantime, the consumer and auto sectors in the country are likely to record slow recovery during the current year. The vehicle sales will see 5.1% growth pick-up in 2021. It must be noted that the sector growth had contracted by 18.4% in 2020.