China Is Losing Its Power to Rein In Commodity-Price Surges
- Dips after speculator warnings a buying opportunity: Goldman
- Fiscal stimulus means the U.S. now has more pricing power
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China’s efforts to rein in surging commodities prices are likely to be in vain as it’s lost the ability to boss the market around, according to two of Wall Street’s biggest firms.
The speed of the rebound in demand in advanced economies, particularly the U.S., means China is no longer the buyer dictating pricing, Goldman Sachs Group Inc. analysts led by Jeff Currie, the bank’s global head of commodities research, said in a note.