13.10.2015 - How China Hurt The Commodity Industry - Will It Do So Again?
One of the complex issues surrounding China's economic growth over the last couple of decades has been the combination of legitimate and illegitimate growth projects. What that did was create a mixed market built upon both real demand and contrived demand, which in one case had sustainable growth prospects and in the other did not. That led to the demand for increased production, which also led to the inevitable collapse of the price of commodities -- because those projects that weren't built because of demand, once completed, brought demand for commodities to a screeching halt. This is where we stand today, with many producers caught up with excessive supply and nowhere to sell it...............................................Full Article: Source
Print