China’s already strong influence on commodity markets is magnified by its role as a massive marginal consumer and, in some cases, marginal supplier of commodities. Currently global prices of energy are high but low for metals. The Citi report discusses recent fundamentals across energy, metals and agricultural markets in China and highlights five key Chinese policies worth paying attention to: petroleum product exports, crude oil imports, domestic coal production, property sector support, and zero-COVID policies.
China monthly PMI and Industrial Production (LHS: NBS PMI, Caixin PMI; RHS: IP y/y change) |
China Total Social Financing (CNY trillion), 2019-present |
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© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Citi Research, NBS, Wind |
© 2022 Citigroup Inc. No redistribution without Citigroup’s written permission. Source: Citi Research, NBS, Wind |
Here’s a little more on the five policies in focus.
The full report offers greater detail on the macro backdrop as well as analysis on implications for bulk commodities, natural gas and base metals, among others. Here’s it is. China Commodities - Five policies from the world’s largest commodity consumer and large producer could change 2022 commodity markets globally
Citi Global Insights (CGI) is Citi’s premier non-independent thought leadership curation. It is not investment research; however, it may contain thematic content previously expressed in an Independent Research report. For the full CGI disclosure, click here.