Coronavirus impacts base metals market

The coronavirus (COVID-19) outbreak continues to spread, with figures from the World Health Organization putting the number of infected people in China at 77,262 and the number of deaths in the country at 2,595, including two in Hong Kong.

Another 2,069 cases and 23 deaths have been reported in 29 other countries, with eight deaths reported in Iran, seven in South Korea, two in Italy, and one in the Philippines, Japan and France, according to figures from WHO on Feb. 24.

However, many believe that the Chinese government continues to underreport the number of people infected, with the actual number significantly higher at over 400,000.

As the virus continues to spread, not only is the human toll likely to get worse before it gets better, but as Chinese businesses are forced to either shut down or limit their operations due to labour shortages and interruptions to supply chains, the Chinese economy and economies the world over will also take time to recover.

The health emergency could delay about US$11 billion worth of planned Chinese nickel investments in Indonesia, the Financial Times reported, quoting Luhu Pandjaitan, a minister in charge of maritime affairs and investment.

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