Commodities Demand
Did you know that China accounts for close to 40% of the consumption of aluminum, copper, lead, tin, zinc, and nickel? China is by far the most important consumer of industrial metals. China is also a large consumer of energy and agricultural commodities. If you want to know what the outlook for commodities demand looks like over the coming decade, look to China. If the Chinese economy is growing, it is safe to assume that demand for commodities is on the rise. In the fourth quarter, China’s GDP growth was over 10%. So commodities demand is likely on the rise, but what about supply? You can’t properly analyze a market without looking at both sides of the supply-demand equation. Included in the most recent issue of Young Research’s Global Investment Strategy is the first installment of our Commodities Outlook. To find out which commodities we are advising subscribers to favor and which commodities should be avoided, please join us.
Jeremy Jones, CFA, is the Editor of Young Research’s Global Investment Strategy and the Chief Investment Officer at Richard C. Young & Co., Ltd., Investment Advisors.
