SHANGHAI (Reuters) by Emily Chow – A China-led economic recovery should boost demand for these commodities in 2021 after COVID-19 roiled global markets in 2020. COPPER Iron ore and steel outperformed in 2020 thanks to booming Chinese construction and manufacturing demand, but base metals are set to lead all metals in 2021 as vaccine rollouts spur a global economic recovery. Copper should rise the most because of its widespread applications in construction, appliances and power grids, while aluminium should also gain. “Next year, we’re more bullish base metals than ferrous. Base is about the global economy. Ferrous is more reliant on China’s economy via infrastructure construction,” said Dong Hao, director of Chaos Research Institute, a subsidiary of Shanghai Chaos Investment, one of China’s largest commodities asset managers. “We’ll probably see a broad-based recovery in the global economy next year and base metals are going to benefit more from this. Copper demand should go up.” SOYMEAL Soymeal has been tapped as 2021’s top agricultural commodity, with demand expecting to be super-charged by a rapidly recovering hog herd after the devastation caused by African swine fever in 2018 and 2019. “China’s hog sector continues to grow and recover. Live hog prices are… continue reading
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