Commodity traders are counting on China for a further recovery in natural resource markets. The country accounts for 30 per cent of the world’s key commodity imports, is two months ahead of the west in easing lockdowns and has used weak prices to stockpile through the crisis.
However, Beijing’s relations with the world are strained as never before. Diplomatic disputes, notably with the US and Australia, highlight a delicate balance, whereby small shifts in international relations could either accelerate global recovery or derail it entirely.
China dominates the iron ore, copper and soyabean markets, absorbing 60 per cent of traded supplies. It buys 30 per cent of globally traded fertiliser, 20 per cent of crude oil and coal, and 17 per cent of the world’s liquefied natural gas (LNG).