One important item that has been underreported and will have a big effect on China's internal demand for copper and thus its price- is that the Covid-19 epidemic in China is essentially over! The same is almost true in South Korea. This is undoubtedly due to the draconian, extreme, but effective total quarantine measures taken in China. Such measures are unlikely to be duplicated in the West- but they were successful. South Korea has taken somewhat less stringent but still effective measures, but has done more with more targeted restrictions based on widespread and effective testing- in contrast to our botched efforts. So new cases in China are essentially down to zero. In fact, ironically, they are going to have to put in travel restrictions against the West to prevent new cases being imported back in.

Unfortunately, cases in the US and Europe are still increasing exponentially and, in addition to directly affecting our own economies, this will still slow China's economy since even if China can get back on its feet and resume production- much of that production depends on being able to export to the West. But to the degree they can resume domestically focused activity- such as construction and energy development- both of which are the main users of copper- demand hopefully will begin to increase again. And at least it also shows that it is possible for there to be an end in sight if appropriate measures are taken. China's epidemic lasted essentially 3 months- from January to March. For us- we shouldn't- and couldn't do what China did- and so, just like Korea, decrease in new cases will be slower- and also, of course, unfortunately, we are far from even reaching our peak- but at least it demonstrates that eventually it will die out here as well- although it will likely take much longer than in China (it has also reached the point where- even if fewer cases- it is already geographically more widely distributed than the more geographically focused outbreak in China). But at least there is an end- although maybe not yet in sight.