Goldman Sees Stronger China Construction Activity Aiding Steel
This article is for subscribers only.
China’s construction activity is showing early signs of improvement as local-government debt stress eases, in a potential boost for commodities including steel, according to Goldman Sachs Inc.
The bid by Beijing to help resolve local government debt has renewed infrastructure activity, Goldman analysts including Trina Chen said in a report, citing a recent trip to China with views from nearly 40 meetings. The bank said its discussions in China “provided early affirmation” of its positive view on commodities demand from construction.