Home Business China’s Oil and Copper Demand Soars, Reports Goldman Sachs

China’s Oil and Copper Demand Soars, Reports Goldman Sachs

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China’s Oil and Copper Demand Soars, Reports Goldman Sachs

China’s demand for major commodities has been growing at robust rates, according to Goldman Sachs. Despite faltering macroeconomic growth, China’s demand for copper, iron ore, and oil has surpassed expectations. This growth is largely driven by the country’s green economy, grid and property completions. The surge in demand for metals related to the green transition, such as copper, can be attributed to China’s onshore solar installations, which have reached unprecedented levels. Furthermore, recovery in China’s manufacturing sector is also boosting demand for base metals like aluminum.

Goldman Sachs predicts that the demand growth for these metals will continue into next year, supported by current positive drivers. China’s oil demand has also been rising due to rapid recovery in oil-intensive service sectors, although analysts expect growth to slow down significantly next year. This surge in commodities comes in spite of a wider downturn in China’s macroeconomic growth. While the Chinese stock market is struggling, commodities are responding positively to the People’s Bank of China’s monetary expansion. Traders in the Chinese market see commodities as a better bet for future improvement in the Chinese real economy.

In summary, China’s demand for major commodities, including copper, iron ore, and oil, has been growing at robust rates, surpassing expectations. This growth is driven by the country’s green economy, as well as recovery in the manufacturing sector. The demand for metals related to the green transition, particularly copper, has surged due to China’s unprecedented onshore solar installations. Despite a wider downturn in China’s macroeconomic growth, commodities are seen as a more promising investment compared to the struggling stock market. Analysts predict that the demand for these commodities will continue to grow, supported by current positive drivers.

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