China’s Big Commodity Inflation Scare Is Easing -- For Now
- Supply pressure across sectors wanes as energy crunch averted
- Govt action in property, emissions could push prices up again
A stacker-reclaimer operates at a coal stockpile site in Taicang, Jiangsu Province, China, on Oct. 23.
Photographer: Qilai Shen/BloombergThis article is for subscribers only.
The commodities boom that helped propel producer inflation to a 26-year high in China is showing signs of waning, with the forces that pushed prices up over the past year now in retreat.
An energy crisis that fueled record coal prices looks becalmed for now, while aggressive efforts to stamp out virus outbreaks are wearing down consumer travel and therefore demand for jet fuels. Meanwhile, the liquidity crisis surrounding China’s highly indebted property developers is vanquishing hopes for a rebound in steel and copper.