Occasionally things happen in markets that defy all logic and expectations. One of those is unfolding before our very eyes and many appear not to have noticed its full significance. I am referring to an incredible revival in the Chinese demand for commodities in recent months.
Having appeared to have been in terminal decline in recent years (see the April's article
), Chinese steel output exploded higher in March (reportedly to near all-time highs).
Reported steel rebar prices in northern China (Beijing/Hebei) have doubled since November last year, with no sign of the rise abating amid reports of strong demand and falling inventories.
Reported Chinese cement production rose by an incredible 24% year-on-year having shown year-on-year falls in each of the previous 12 months. National power generation grew by 4% year-on-year – its highest growth since September 2014.
The "dead" Chinese housing market also sprang back to life with...