China Still Drawing In Commodities

November 2004 | Market Strategy

Chinese growth may have moderated slightly in Q304 to 9.1% y-o-y from 9.6% y-o-y the previous quarter, but the country's demand for commodities is unlikely to let up. China's State Reserves Bureau holds Shanghai Futures Exchange contracts for 30,000 tonnes of December copper, while stocks in the city are only around 50,000 tonnes. Zinc, too, has been rising on the back of China moving towards being a net importer of the metal. Thus, prices are set to remain high, and Kazakhstan, as a major producer of both metals, is likely to benefit. Refined copper production rose 4.8% y-o-y in the

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