China plays a key role in the global balance of supply and demand. China's demand for some commodities (such as iron ore) accounts for half of global demand.
The impact of the recent slowdown in China’s economic growth has been quite obvious. Iron ore prices fell to $132/ton, down about 32% from the historical high of nearly $200/ton that was set earlier in 2011. At the same time, the current copper price has dropped below 8,000 US dollars / ton, lower than the highest record of more than 10,000 US dollars / ton set last year.
However, the impact of China's shift to domestic consumption patterns will take longer to show up. The impact of this transformation on various raw materials will be uneven.
BHP Billiton, the world's largest mining company, expects that “as the construction cycle maturesâ€, raw materials such as iron ore and steel will feel the impact earlier. By 2025, when the Chinese economy reaches a level of GDP of 20,000 US dollars per capita, the ratio of consumption of these two commodities to GDP is likely to peak.
Commodities such as copper and aluminum are expected to stabilize later in the cycle (when per capita GDP reaches around $35,000). The use of certain base metals in manufacturing seems to indicate that their prices still have room to rise in the next few years.
Finally, the prices of oil, electricity and food commodities may continue to climb until the Chinese economy catches up with developed countries. China's population size means that energy consumption will continue to rise for many years to come, even if the growth rate has decreased.
Brass Flange Ball Valves,Brass Flanged Gate Valve,2 Brass Ball Valves,Brass Ball Valve 3/4
NINGBO RIDE SPORT EQUIPMENTS CO.,LTD. , https://www.assur-valve.com