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Commodity rally threatens to erode US$460b China bonus

Rising prices also increase inflationary pressure, limiting scope of the central bank to stimulate the economy

China's steel mills lost money for most of last year, even as the cost of iron ore plunged, because of a global glut and weak demand.


CHINA got a US$460 billion break annually during the collapse in commodity costs, so this year's rally in everything from oil to iron ore is starting to erode the bonus of cheap imports.

That complicates President Xi Jinping's efforts to prop up faltering growth in the...

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