(Bloomberg) One pillar of this year’s blistering commodities rally Chinese demand may be teetering.
Beijing aced its economic recovery from the pandemic largely via an expansion in credit and a state-aided construction boom that sucked in raw materials from across the planet. Already the world’s biggest consumer, China spent $150 billion on crude oil, iron ore and copper ore alone in the first four months of 2021. Resurgent demand and rising prices mean that’s $36 billion more than the same period last year.
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Synopsis
A lag between the withdrawal of credit and stimulus from the economy and its impact on China’s raw material purchases may mean that markets haven’t yet peaked.
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Some sectors have seen policy push an expansion in capacity, such as Beijing’s move to grow the country’s crude oil refining and copper smelting industries.
One pillar of this year’s blistering commodities rally Chinese demand may be teetering.
Beijing aced its economic recovery from the pandemic largely via an expansion in credit and a state-aided construction boom that sucked in raw materials from across the planet. Already the world’s biggest consumer, China spent $150 billion on crude oil, iron ore and copper ore alone in the first four months of 2021. Resurgent demand and rising prices mean that’s $36 billion more than the same period last year.
Copper’s at the highest in a decade, aluminum is surging, and iron ore is closing in on a record as steel prices climb. (File pic shows aluminium storage at Port Klang)
LONDON: Investors looking to gauge the strength of the global recovery need look no further than metals markets.
Copper’s at the highest in a decade, aluminum is surging, and iron ore is closing in on a record as steel prices climb.
Underpinning gains, which are taking commodities toward the highs of the last supercycle, is growing evidence that the world’s largest economies are shaking off the coronavirus shock and their growth roadmaps will have a decidedly green focus.
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Copper climbed to its highest price in almost a decade as the global recovery from the pandemic extended a rally in metals markets.
Aluminum is surging and iron ore jumped to a fresh high as commodities advance toward the highs of the last supercycle. Metals are benefiting as the world’s largest economies announce programmes to build back greener from the coronavirus shock.
The US recovery is accelerating and President Joe Biden’s $2.25 trillion infrastructure plan will highlight sectors like electric cars, driving further gains in commodities critical to the green energy transition. This is taking place alongside a continued economic boom in China, where a push to reduce emissions is filtering through to supply cuts for some metals just as demand is picking up.
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Iron ore nears $190 a ton on robust Chinese demand.
By Bloomberg News
26 Apr 2021 14:39
Image: Bloomberg
Copper climbed to the highest in almost a decade as the global recovery from the pandemic extended a rally in metals markets.
Aluminum is surging and iron ore jumped to a fresh high as commodities advance toward the highs of the last supercycle. Metals are benefiting as the worldâs largest economies announce programs to build back greener from the coronavirus shock.
The US recovery is accelerating and President Joe Bidenâs $2.25 trillion infrastructure plan will highlight sectors like electric cars, driving further gains in commodities critical to the green-energy transition. Thatâs coming alongside a continued economic boom in China, where a push to reduce emissions is filtering through to supply cuts for some metals just as demand is picking up.