China’s Worsening Virus Threatens Commodities Supply and Demand
- Consumption of crude this quarter will be hit by lockdowns
- Metals output is being strained by the Covid Zero policies
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Almost 80% of the Chinese economy has been affected in some way by the worst outbreak of Covid-19 in two years, straining the supply of commodities and posing an increasing threat to demand.
China’s restrictions to contain the fast-spreading omicron variant have primarily hit travel over both short and long-distances, which is a direct drag on fuel consumption and a complication for supply chains.