PRESS ROOM
China’s intervention in metals markets cannot derail the rally
Friday 09th July '21
The surge in commodity prices is stoking concerns of higher inflation being passed onto the consumer in China, the world’s largest commodity consumer. This was evident after China’s producer price index, which is strongly correlated with commodities prices, surged 9% in May to the highest level since 2018. China’s recent efforts to dampen commodity speculation has cooled the metals rally to some degree but reflecting on their attempt back in 2010, we expect it to be short-lived considering the loose monetary policy worldwide and the large stimulus packages in the US. More details here.