China continues to drive the demand for industrial metals, as recent news that the industrial output of China increased by a huge 16 percent in November over last year, confirmed China will remain the largest consumer of industrial metals in the world for some time to come. Consequently, commodity prices will rise in unison with that huge demand.
China will also drive demand for other commodities as well, as their appetite for commodities across the board won't let up any time soon.
This is another reason banks have been expanding their commodities units, as the demand of commodities in China hasn't slacked at all, but has only been temporarily put on hold until their economy turned around.
Agriculture, water, oil and other energy products will also be in big demand in China, as the needs in those areas are immediate and evident.
Still, commodity prices, based on China demand alone guarantees prices will rise among a number of them, and add India and other countries in Asia to the mix, and you have an idea of the potential in the commodity sector going forward.
No comments:
Post a Comment