Arab Today, arab today china to rein supreme in world commodities in 2014
Last Updated : GMT 19:08:27
Arab Today, arab today
Arab Today, arab today

China to rein supreme in world commodities in 2014

Arab Today, arab today

Arab Today, arab today China to rein supreme in world commodities in 2014

Beijing - AFP

Grains, metals, meat: these are just three of the commodities being sucked in by the voracious Chinese economy which is set to be the key driver on raw materials markets this year. French commodity research specialist Cyclope in a report published this week argues that "in the coming months, global markets will feel even the slightest sneeze from China". World commodity prices have surged in recent years, driven by rising demand from increasingly affluent shoppers in emerging markets and particularly China. China has also amassed huge reserves of dollars and has the financial fire-power to buy and outbid, since many commodities are traded in dollars. China overtook India to become the world's biggest gold-consuming nation in 2013, and the World Gold Council forecasts that its appetite could jump by about 20 percent by 2017. It is also close to overtaking the United States as the world's biggest oil importer and has become a vast consumer of many agricultural commodities as more people can afford to eat meat and dairy products. Its influence on global commodity markets has become even more important in the wake of the global economic crisis, which has hampered growth in the developed world. - China and wine - Even sales of top French wines are being driven by Chinese demand, said Philippe Chalmin, a professor at Paris Dauphine University, who led the Cyclope report. But growth in the Chinese economy, the world's second-biggest after the United States discounting the ranking of the European Union, is decelerating as Beijing's leaders wean the country off investment as the key driver of expansion and shift the focus towards consumer spending. The slowdown in China last year had a huge impact on metal markets in particular, sending prices lower. On average, raw material prices fell by 5.0 percent in 2013, the report said. In 2014, Cyclope predicts that prices will fall even further, by an average of 4.0 percent, despite support from an expected uptick in global growth. Nonetheless, "the current slowdown and future activity should not cause major adjustments," reads the report. "The slow transformation of the growth model and the further development, instead, point to a higher Chinese demand for raw materials." - A giant appetite - China cemented its position as a key player in world cereal markets in 2013 when it resumed international wheat imports for the first time for 10 years. China has also become the world's second-biggest buyer of world beef products, with its imports quadrupling in recent years owing to concerns about local products after numerous health scares. If this appetite for foreign beef continues, "the global market for beef will turned upside down," the report says. Similarly, several scandals involving tainted milk and a growing appetite for Western diets have also turned China into a "key to world dairy markets", said Chalmin. China's influence can be even harder to gauge because its politicsare so opaque, Chalmin added. In recent months several agricultural commodities of which China is a major importer -- soya, wheat and corn -- have felt the effects of Beijing's policy changes. US corn exports to China, the fastest-growing US market, have dried up rapidly since the Politburo toughened its stance on genetically-modified grain, while soya prices have been hurt by worries about possible defaults by Chinese buyers. Coffee and cocoa are the only agricultural commodities which have been little affected by China's rise -- although consumption of both of these is growing. However, Chinese demand is not the only factor driving food prices in the year ahead. Agricultural commodity prices are also likely to be affected by the return of the El Nino weather system this year. The El Nino occurs when a huge mass of warm water builds in the western Pacific and eventually shifts to the eastern side of the ocean and can cause widespread disruption. The UN forecasts that the return of the weather pattern could constitute a "major menace" for crop output in the Pacific and Indian Ocean. A question market also hangs over the next grain harvest in the Black Sea region of Ukraine, a major grain exporter which is already facing a political crisis. Biofuels and genetically modified technology will also be key drivers for agricultural prices, as will the withdrawal of major financial players commodity trading. "Raw materials are the tip of all the tensions of the world," said Chalmin.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today china to rein supreme in world commodities in 2014 Arab Today, arab today china to rein supreme in world commodities in 2014

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today To release new antiques collection

GMT 20:33 2017 Friday ,17 February

To release new antiques collection
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU

GMT 16:23 2017 Sunday ,19 February

Global energy news

GMT 16:05 2017 Sunday ,19 February

Trudeau calls for wider social benefit from economy
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 14:04 2017 Tuesday ,14 February

"Lagom" new Swedish concept in interior design

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday