Sucden Financial’s Jeremy Goldwyn
China’s ambitions regarding commodity benchmarking and exerting greater influence over global prices appear somewhat misplaced and are perhaps rather more forceful than is even worthwhile for the country, at this time. The Chinese have had a strong influence on pricing for years – even if that has usually meant driving prices up, against their own wishes but because of the strength of their demand.
Also, how do the Chinese respond to the point that their recent price action on steel and iron ore have shown that China is certainly a price setter, but that the Western world is left wondering if that is necessarily a positive thing?
Do these actions really tally with the comments of Fang Xinghai, the vice-chairman of China’s regulator, the China Securities Regulatory Commission (CSRC), that “As the largest consumer, if [these futures prices] are in China, we will have more...