China’s five-year plan to reshape commodities demand, LNG to benefit the most – ANZ


China’s Communist Party met last week to thrash out its 14th five-year plan. The plan specifies goals for economic development plus social and environmental targets. Economists at ANZ Bank expect to see demand for commodities remain strong. However, the composition of demand will change from that of the past five years. The goal to hit become carbon neutral by 2060 is the prime driver behind this transition.

Key quotes

“China’s transition to a low-carbon economy is expected to reshape commodities demand in coming years. Overall we see demand remaining strong, but the mix will shift as it pursues its goal to hit peak carbon emission by 2030 and become carbon neutral by 2060.”

“We expect a gradual shift in the energy mix away from fossil fuels, as the country balances economic growth and environmental goals, and we expect LNG to benefit the most. Demand for transport fuel will suffer, but greater emphasis on petrochemicals should see crude oil imports remain strong.” 

“We see high value-added metals such as copper and nickel benefiting the most as China increases electrification of the auto sector powered by renewable energy. Steel demand is likely to remain relatively robust. However, continued use of electric arc furnaces will weigh on iron ore demand.”

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Feed news

Latest Forex News


Latest Forex News

Editors’ Picks

GBP/USD retreats from new highs amid dollar strength

GBP/USD has fallen off the peak of 1.3719, the highest since 2018, amid fresh dollar strength. Optimism about the UK's vaccine campaign and lower cases boosted sterling earlier. The greenback awaiting Biden's first moves as President. 

GBP/USD News

EUR/USD falls toward 1.21 ahead of Biden´s inauguration

EUR/USD has been descending toward 1.21. President-elect Biden is inaugurated later in the day and hopes of stimulus are high after Treasury Secretary nominee Yellen's testimony. 

EUR/USD News

Gold: Bulls recapture 200-DMA ahead of Biden's inauguration

Gold prices are attempting to correct higher above 200-DMA. The metal cheers rising US inflation expectations amid hopes of a massive stimulus package under the incoming Biden administration. 

Gold news

Bitcoin Price Prediction: Shaking a tree always makes the ripe fruit fall

BTC price is moving away from the historical high and seeks support at the 23.6% level of the Fibonacci retracement system from the entire previous rally.

Read more

US Dollar Index: Upside target remains at 91.00

DXY met buyers in the 90.30 region earlier on Wednesday and now resumes the upside to the 90.50/55 band.

US Dollar Index News

Forex MAJORS

Cryptocurrencies

Signatures