Close Menu
Invest Intellect
    Facebook X (Twitter) Instagram
    Invest Intellect
    Facebook X (Twitter) Instagram Pinterest
    • Home
    • Commodities
    • Cryptocurrency
    • Fintech
    • Investments
    • Precious Metal
    • Property
    • Stock Market
    Invest Intellect
    Home»Commodities»Commodities Steady as China Pledges More Support for Growth – BNN Bloomberg
    Commodities

    Commodities Steady as China Pledges More Support for Growth – BNN Bloomberg

    October 13, 20243 Mins Read


    (Bloomberg) — Commodities prices steadied after China promised greater support for its stuttering economy.

    Although the finance ministry stopped short of unveiling concrete spending plans for fiscal stimulus at a closely watched briefing on Saturday, investors were reassured by its pledges to shore up growth. They include more help for the crisis-wracked property sector — a keystone of commodities demand in China — and heavily indebted local authorities, as well as hints that government borrowing will be expanded.

    Iron ore futures in Singapore reversed an early decline to rise 0.4% to $106.60 a ton in Singapore as of 10:02 a.m. local time. Prices of the steel-making material have been on a roller-coaster this year, climbing above $140 a ton in January before sinking below $90 last month. 

    The copper market has followed a similar trajectory, hitting a record north of $11,000 a ton in May before retreating. The three-month contract on the London Metal Exchange pared losses to trade 0.9% lower at $9,707 a ton. Brent crude oil futures fell 1.5%, after dropping as much as 2% earlier. China is the world’s biggest importer of all three commodities.

    The ministry showed “a very positive commitment” to following up on previously announced policies, said Li Xuezhi, head of Chaos Ternary Research Institute. “We are relatively bullish,” he said.

    Metals have rallied in recent weeks after Beijing launched a barrage of monetary interventions to support growth. But commodities investors have clamored for further measures on the fiscal side of the equation, which has a more direct impact on consumption of materials, and is needed to replace demand lost to China’s prolonged real estate slump.

    As such, the government’s focus on plans to right the property sector will be welcomed by markets, not only through demand for raw materials but because housing is such an important store of wealth for Chinese people.

    Housing Crisis

    The housing crisis has of necessity shrunk the sector’s importance to Chinese steel mills, with construction accounting for 24% of consumption in 2023 from 42% in 2011, according to mining giant BHP Group Ltd. Machinery-making by contrast has gone from 20% to 30% in that time, while steel exports have risen sharply over the past two years.

    Copper benefits from more widespread applications than steel and has a starring role in the energy transition, although construction still accounts for almost a fifth of the market, according to Citic Securities Co. Prices of other metals such as aluminum and zinc, and fuels like diesel, are also influenced by the level of activity on building sites, as well as the purchases of durable goods that typically accompany a new home.

    It’s the emphasis on boosting consumption which is expected to steer the government’s fiscal response to its economic woes. Decades of urbanization have saturated the space for metals-intensive state investment in infrastructure, which has become much less reliable as a driver of growth. But, again, the finance’s ministry’s briefing contained few new pointers on how the government plans to lift spending among its citizens. 

    The extent of China’s challenges on that front were laid bare once more by price data on Sunday, which showed the economy heavily beset by deflationary pressures. Consumer prices rose less than forecast in September, while at the factory-gate they fell for a 24th straight month, underscoring the need for further policy support.

    Details — and a price tag — for enhanced fiscal measures could still be forthcoming, perhaps when Chinese legislators meet later this month. But in the meantime, commodities bulls are likely to draw in their horns until the scale of the government’s support is revealed.

    –With assistance from Martin Ritchie.

    ©2024 Bloomberg L.P.



    Source link

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

    Related Posts

    Trump, Congressional Republicans propose big cuts for Western renewable energy labs

    Commodities

    Nigerian firm to develop deep-water port, economic zone in St. Kitts

    Commodities

    In a market of 20%+ yields, where should you be investing? 

    Commodities

    Google says it will switch off energy-heavy AI usage at critical points if needed

    Commodities

    Metal Gear Solid-alike Spy Drops fails to capture the magic of the game it apes – GameSpew

    Commodities

    Twisted Metal Season 2 Episodes 4 & 5 Preview: The Tournament Nears

    Commodities
    Leave A Reply Cancel Reply

    Top Picks
    Commodities

    Corebridge Financial Inc. Sells 343 Shares of Federal Agricultural Mortgage Co. (NYSE:AGM)

    Cryptocurrency

    Arizona’s Pioneering, Britain’s Enlightenment, and Bhutan’s Quiet Enrichment

    Property

    Avison Young Markets SoHo Property with POP MART Flagship Store

    Editors Picks

    Trump’s Fossil Fuel Expansion Could Derail Clean Energy Momentum

    January 21, 2025

    OPEC Expects Progress on Trade, Holds Oil-Demand Outlook Steady — Commodities Roundup

    July 15, 2025

    Half-fit Chopra feels Paris silver was as good as Tokyo gold

    August 17, 2024

    Investment Property Realty Group sells 30-unit apartment building for $20 million : NYREJ

    July 30, 2024
    What's Hot

    Le canadien Davie entreprend d’acquérir des chantiers navals américains pour y construire des brise-glaces

    June 12, 2025

    Synergix takes 47,000 sq ft at Suttons Business Park

    October 24, 2024

    Next Cryptocurrency to Explode, 27 April — AIOZ Network, Alpaca Finance, Gas

    April 27, 2025
    Our Picks

    Global NPK Fertilizers Market Set to Reach USD 4.87 Billion by 2035, Fueled by Agricultural Innovation and Food Security Initiatives – FMIBlog

    June 25, 2025

    En Kanaky, deux stratégies pour le « métal du diable », par Benoît Trépied (Le Monde diplomatique, juillet 2025)

    June 26, 2025

    Les bénéfices de K Cash Fintech bondissent en 2024 -Le 20 mars 2025 à 07:55

    March 19, 2025
    Weekly Top

    CNBC-TV18 Exclusive | PB Fintech acquires Pensionbazaar.com, say sources

    August 5, 2025

    Copper price slips as unwinding of tariff trade boosts LME stockpiles

    August 5, 2025

    Utilities ETF (IDU) Hits New 52-Week High

    August 5, 2025
    Editor's Pick

    Lone Star Funds annonce la vente de Tokyo β, un portefeuille de biens immobiliers locatifs japonais

    April 3, 2025

    Adam Silver met les choses au clair avec le trade de Luka Doncic : « Je ne peux pas faire ça »

    April 17, 2025

    Paris 2024 Olympics Will Test New Technology, Including AI

    July 27, 2024
    © 2025 Invest Intellect
    • Contact us
    • Privacy Policy
    • Terms and Conditions

    Type above and press Enter to search. Press Esc to cancel.