First Warning Sign in Global Commodity Boom Flashes in ChinaBloomberg News
Economic expansion and credit impulse may have already peaked
Some prices still have to room to rise due to lagging effects
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.