Coronavirus will impact miners and metal prices

China has confirmed that the coronavirus contagion is spreading, with 15 cities now under quarantine.

This is going to hugely impact commerce in China, and by default, mining companies as metal prices are already starting to slip as anticipated demand is lowered during the crisis.

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Coronavirus will impact miners and metal prices

China has confirmed that the coronavirus contagion is spreading, with 15 cities now under quarantine.

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This is going to hugely impact commerce in China, and by default, mining companies as metal prices are already starting to slip as anticipated demand is lowered during the crisis. Oil prices may fall as well, although all the Libyan supply has been lost for now, due to rebel action, so one may offset the other.

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“The spread of a deadly new virus is accelerating”, Chinese President Xi Jinping has just warned, after holding a special government meeting on the Lunar New Year public holiday.

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The country is facing a “grave situation” Mr Xi told senior officials.

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The coronavirus has killed at least 41 people, possibly many more, and infected some 1,400 since its discovery in the city of Wuhan. Travel restrictions have already hit several affected cities, and from Sunday, private vehicles will be banned from central districts of Wuhan, the source of the outbreak.

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As this is the New Year holiday season in China, the impact on metal prices will take a while to work through, but with the situation worsening it is hard to see how normal commerce will function with so many restrictions in place, and this will surely effect copper, steel, and coal prices shortly?

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We can only hope for a quick resolution for the sake of all Chinese citizens, but the situation is not looking good as this is being written

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It may be a tough few weeks for the miners.

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