The International Monetary Fund analysed future Chinese demand for metals as its economy rebalances in its latest World Economic Outlook

John Robertson

PortfolioDirect

The International Monetary Fund analysed future Chinese demand for metals as its economy rebalances in its latest World Economic Outlook. The Fund has highlighted the importance of drawing a distinction between low grade and high grade metals in coming to conclusions about the longer term metal intensity of the Chinese economy. Fund researchers have identified key income levels at which a switch in the mix of commodities can be expected. Demand for basic and low grade commodities, like copper and iron ore, will start to grow more slowly to be replaced by metals like zinc, aluminium and tin. The IMF's analysis is a potential blow to the investment prospects of the sector leaders whose focus on iron ore and copper risks taking the brunt of China's changing pattern of economic activity.


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John Robertson
John Robertson
PortfolioDirect

John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...

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