Markets Bearish toward China’s Economic Growth, Base Metals Prices Down on Short Selling-Shanghai Metals Market

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Markets Bearish toward China’s Economic Growth, Base Metals Prices Down on Short Selling

SMM Insight 11:48:06AM Apr 20, 2013 Source:SMM
SHANGHAI, Apr. 20 (SMM) – China’s Q1 GDP grew 7.7% YoY, below the expected 8.0% and the previous quarter’s 7.9%. Gloomy global economic outlook and worries over demand in China sent commodity and nonferrous metals prices plunging.  
 
Major financial agencies lowered their forecasts for China’s economic growth, with details in the table below. Nomura Securities predicts a 7.5% growth for the Chinese economy in 2013, which is consistent with the target set by the Chinese government. 
 
 

Agency

China’s GDP in 2013%

Goldman Sachs

7.8

J.P. Morgan

7.8

Citibank

7.7

BNP Paribas

7.9

Nomura Securities

7.5

National Australia Bank

8

World Bank

8.3

Merrill Lynch

8

 
 The recently held Standing Meeting of the State Council stresses rational investment scale, construction of roads in cities, transportation and environmentally friendly infrastructure, technical renovation, acceleration in outdated capacity elimination. These heightened the central government’s focus on the quality of economy instead of growth. 
 
Nonferrous metals prices dropped as China’s tepid economic growth triggered sell-off. Once the Chinese economy turns around, bearish sentiment will ease.
 
The total planned investments for new projects in China increased 10.1% YoY during January-February period and 14.0% YoY during January-March period, a sign investments in Q2 will expand.  
 

Markets Bearish toward China’s Economic Growth, Base Metals Prices Down on Short Selling

SMM Insight 11:48:06AM Apr 20, 2013 Source:SMM
SHANGHAI, Apr. 20 (SMM) – China’s Q1 GDP grew 7.7% YoY, below the expected 8.0% and the previous quarter’s 7.9%. Gloomy global economic outlook and worries over demand in China sent commodity and nonferrous metals prices plunging.  
 
Major financial agencies lowered their forecasts for China’s economic growth, with details in the table below. Nomura Securities predicts a 7.5% growth for the Chinese economy in 2013, which is consistent with the target set by the Chinese government. 
 
 

Agency

China’s GDP in 2013%

Goldman Sachs

7.8

J.P. Morgan

7.8

Citibank

7.7

BNP Paribas

7.9

Nomura Securities

7.5

National Australia Bank

8

World Bank

8.3

Merrill Lynch

8

 
 The recently held Standing Meeting of the State Council stresses rational investment scale, construction of roads in cities, transportation and environmentally friendly infrastructure, technical renovation, acceleration in outdated capacity elimination. These heightened the central government’s focus on the quality of economy instead of growth. 
 
Nonferrous metals prices dropped as China’s tepid economic growth triggered sell-off. Once the Chinese economy turns around, bearish sentiment will ease.
 
The total planned investments for new projects in China increased 10.1% YoY during January-February period and 14.0% YoY during January-March period, a sign investments in Q2 will expand.