The impact on the demand/supply of metals is due of rising demand in China and the other emerging economic markets
China has been and continues to be the largest driver of metal prices over the last 10 ys due to the country's huge investment led growth that is consuming unprecedented quantities of iron ore, coal,precious and base metals and other raw commodities.
The wealth created by that growth is making its way into Chinese society, it has given rise to growth if its middle class, one that is ready, willing and able to buy foreign-made products.
Investment in the Chinese infrastructure has been the largest factor in China's growth story when it comes to metals demand.
This investment has brought about monumental projects, including; airports, highways, seaports, railways, public buildings, bridges for China's construction sector.
Added to those China is experiencing the development of a massive residential and commercial construction sector, one that has added hundreds of millions of square feet of apartments and office blocks, all of which have consumed steel and base metals, copper for its nerve systems and steel and concrete for its skeletons.
This action is driving the development of the World's largest Steel making and smelting industries for Copper, Aluminum, Lead, Zinc, and other metals.
The supply chain responded dynamically by growing of heavy to light manufacturing in order to supply the equipment to facilitate these huge undertakings.
China is forcing a historic re-alignment in its economy; that from being export driven to domestic consumption driven.
These change in Western economies have taken decades to but, as in many things Chinese, is happening in a few short years in China, and on the other side of the World the West is seeing the pitch changing rapidly, as Beijing works diligently to realign China's economy away from reliance on exports and fixed investment for growth and to internal consumption.
The World must give the Chinese leadership the credit for it proactive stance as it marches from # 2 to the World's largest economy. If you are a keen observer, you can see this happening right before your eyes.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.