China's 'Unprecedented' Anti-Pollution Drive to Rattle Metals
- Morgan Stanley says wider economic activity may be affected
- Goldman Sachs warns that iron ore prices may extend declines
Smog hangs in the air around buildings in the Luohu district of Shenzhen, China.
Photographer: Brent Lewin/BloombergThis article is for subscribers only.
China’s plans to tackle pollution over the winter could be the “next big event to unsettle global commodity prices,” and plant closures may be compounded by restrictions on transport and construction, according to Morgan Stanley.
“These policies really are unprecedented,” analysts including Tom Price said in an emailed note dated Monday that lifted the bank’s forecasts for most metals. Investors will probably be cautious as they wait to see the scale and timing of the measures, which could include disruptions to ports, rail and road, as well as closing steel and aluminum plants in key hubs, according to the bank.