InvestorQ : How big is China in terms of commodity consumption? Why are metal prices depending on China always?
Abhisha Yadav made post

How big is China in terms of commodity consumption? Why are metal prices depending on China always?

Answer
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Tisha Malhotra answered.
1 year ago


Some of the statistics pertaining to China’s share of global commodity consumption are just mind-boggling. China accounts for 54% of world aluminium consumption, 50% of world nickel consumption, 48% of global copper consumption, 46% of world zinc consumption and 45% of world steel consumption. It is not just about industrial commodities. China consumes 31% of world cotton, 30% of world rice, 22% of global corn output and 17% of global wheat production. Most importantly, 23% of global gold production and nearly 14% of global oil output is also consumed by China. This makes it clear why any slowdown in China can impact countries ranging from Brazil, Australia, Indonesia, Thailand, South Africa, Turkey and Canada as all these nations will see their exports falling and their domestic incomes and employment contracting as a result of a slowdown in China.