We hear a lot about how China’s commodities demand is enormous, but a latest report from Morgan Stanley, ‘The China Files: Europe’, shows us just how larger the nation’s consumption has become.
China is a voracious global consumer of coal, tin, lead, zinc, aluminium, and copper. Here it all is, in a snapshot:
Today, China competes for these limited resources with other growing economies in a global market vastly different from the one that it entered as the dominant emerging economy in 1993. Since then, more countries have started to develop— Brazil, Russia, and India, for example—and now demonstrate considerable demand for the same resources as China.
If China and other emerging economies keep growing at current speeds without reducing their energy and commodity dependency, prices for these resources may move beyond what China can afford, triggering an economic slowdown in the country.
You can also add iron ore and steel to the list, which for some reason aren’t shown on the MS chart above.
(Via Morgan Stanley, The China Files, Jerry Lou, 29 October 2010)