China has taken the decision to revive its industrial activities to a full-swing. It has started focusing on building roads, bridges, utilities, broadband, railroads in different regions. And it has resulted in huge demand for different metals such as iron ore, nickel, zinc, and other metals used in infrastructural developments.
Due to this, the prices of different metals have started to increase. Many analysts have expressed that the consumption of metals by China for industrial purposes is almost half of that consumed by the rest of the world.
From the end of the March month, the prices for different metals have started to increase. It has resulted in a boom in the overall spike in the growth of the global economy. It is found that the prices of iron ore have increased by 40%, nickel prices have increased by 25%, and copper has seen a hike by 35%.
Caroline Bain, a commodities market analyst at Capital Economics in London has stated that China has come back on its investment route. And it is now investing in metals-intensive infrastructure on a large scale. This has increased the demand for metals in China and it has eventually resulted in a hike in the overall growth of the world economy.
China suspended its industrial activities for a certain time interval due to the Covid-19 pandemic. Many other countries also got affected due to it. The global pandemic has halted the overall growth of the world for a long time. Now, China is coming back to its normal routine of industrial production, it is bringing the world economy on track.
