China’s Commodities Demand Will Sink While Covid Zero Persists
- Base metals may be a better reopening trade than steel
- Edible oils and cotton hit hard by virus restrictions
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Beijing’s easing of some virus restrictions spurred a sharp rally across commodities last week because the health of the world’s raw materials markets hinges to such a large degree on how much China is buying.
That demand has hit the rocks this year, as a stuttering economy threatens to end the decades-long expansion in imports of the key building blocks for growth. For many key commodities, prices will find it difficult to make headway while Beijing’s Covid-Zero policies persist.