{"id":1186058,"date":"2020-05-22T14:56:01","date_gmt":"2020-05-22T19:56:01","guid":{"rendered":"https:\/\/www.mining.com\/?p=1024747"},"modified":"2020-05-22T14:56:01","modified_gmt":"2020-05-22T19:56:01","slug":"rising-us-china-tensions-halt-copper-price-rally","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1186058","title":{"rendered":"Rising US-China tensions halt copper price rally"},"content":{"rendered":"<p>Industrial metals fell back on Friday as warnings about rising tensions between the world&#8217;s two largest economies overshadowed a massive economic stimulus announced by Beijing, the world&#8217;s top commodities consumer.<\/p>\n<div class='ad-slot' id='div-gpt-ad-1561499308230-0'><script>googletag.cmd.push(function() {    googletag.display('div-gpt-ad-1561499308230-0');    googletag.pubads().addEventListener('slotRenderEnded', function (event) {        if (event.isEmpty) {            var id = event.slot.getSlotElementId();            var x = document.getElementById(id);            if(x == null) return;            if (x.parentElement.classList.contains('ad-slot')) {                x.parentElement.style.display = 'none';            }\t\t\t\t        }    });});<\/script><\/div>\n<p>Copper trading in New York fell by 3.6% to $2.37 a pound ($5,225 a tonne) in lunchtime trade, halting a rally that saw the bellwether metal gain nearly 20% from lows hit mid-March. <\/p>\n<p>Covid-19 dealt a serious blow to the Trump administration&#8217;s January trade deal which included promises by China of hundreds of billions of dollars of US imports of goods and commodities, particularly oil and gas.  <\/p>\n<p>China&#8217;s move this week to tighten its grip on Hong Kong torpedoed any hopes of a promised phase two trade scheduled for later this year; instead a new set of sanctions is now likely in response. <\/p>\n<p>Peter Boockvar, chief investment strategist at Bleakley Advisory Group<a href=\"https:\/\/www.cnbc.com\/2020\/05\/22\/us-china-tensions-could-become-a-bigger-headwind-for-the-stock-market.html\"> told CNBC<\/a> that Trump &#8220;is listening to his hawkish advisors like trade advisor Peter Navarro&#8221;:<\/p>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cThe problem now is the global economy was much better when we had this tariff stuff before and was able to absorb it, and now we\u2019re much less able to absorb it.<\/p>\n<\/blockquote>\n<blockquote class=\"wp-block-quote\">\n<p>\u201cTrump is acting out and deflecting and blaming ahead of the election about who got us into this pickle. China is now the archery target for this virus and Trump is going to let the world know: \u2018It wasn\u2019t me, it was them.\u2019\u201d<\/p>\n<\/blockquote>\n<h2>China&#8217;s &#8220;new infrastructure&#8221;<\/h2>\n<p>Weakness in the copper price came despite an announcement on Friday of a Chinese stimulus package similar in size than the nearly $700 billion pumped into the economy during the 2009 global financial crisis.<\/p>\n<p>In a <a href=\"https:\/\/www.capitaleconomics.com\/publications\/china-economics\/china-economics-focus\/chinas-stimulus-plans-and-the-implications-for-growth\/\">note<\/a> Capital Economics says that the economic measure where more aggressive than expected and points out how China\u2019s physical infrastructure expanded since 2009: <\/p>\n<blockquote class=\"wp-block-quote\">\n<p>The network of paved roads has almost doubled in size and the freeway network has more than doubled. China has built a high-speed rail network and expanded the regular network by a third. Ninety airports have been built. And developers have built 75 million urban homes.\u00a0<\/p>\n<\/blockquote>\n<p>Given its widespread use in transportation, electrical grids, manufacturing and construction, copper demand could receive a massive boost by the plan, which is heavily focused on infrastructure spending. <\/p>\n<p>Moreover a large chunk of the investment are destined towards so-called \u201cnew<strong> <\/strong>infrastructure&#8221; mentioned by Chinese Premier Li in today&#8217;s announcement says Capital Economics.  <\/p>\n<p>That refers to among other things building out 5G networks, \u201cnext generation information networks\u201d and charging facilities for electric cars. All of which needs copious amounts of copper.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Massive infrastructure spending announced by Beijing does little to assuage fears of full out trade war between world&#8217;s largest economies.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[369,4],"tags":[],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186058"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1186058"}],"version-history":[{"count":2,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186058\/revisions"}],"predecessor-version":[{"id":1186061,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1186058\/revisions\/1186061"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1186058"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1186058"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1186058"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}