Global commodity markets are turning more positive toward China as the Asian giant continues to import massive amounts of resources like iron ore and copper even as economic growth slows, the Wall Street Journal reported Monday.
Many investors and analysts are betting that commodity prices have bottomed, with the Chinese government seen stabilizing the nation’s economy at current levels around 7 percent, it said.
While the growth will be below the double-digit expansions of the past decade, the economy is now so large it will continue to suck in huge quantities of raw materials for years to come, analysts were quoted as saying.
“People are being a little too stringent in their China views,” Sameer Samana, senior international strategist in St. Louis at Wells Fargo Advisors, which oversees US$1.4 trillion in assets, was quoted as saying.
Commodities such as iron ore, nickel and aluminum have in the past month begun to recoup earlier 2014 losses. Copper prices are up about 5 percent since hitting a three-and-a-half year low in March, the report noted.
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