China’s drive for cleaner air is the ‘next big problem for commodities’
Shanghai — China’s plans to tackle pollution over the winter could be the "next big event to unsettle global commodity prices", and plant closures may be compounded by restrictions on transport and construction, according to Morgan Stanley. "These policies really are unprecedented," analysts including Tom Price said in an e-mailed note on Monday that lifted the bank’s forecasts for most metals. Investors will probably be cautious as they wait to see the scale and timing of the measures, which could include disruptions to ports, rail and road, as well as closing steel and aluminium plants in key hubs, according to the bank. The supply of metals in the top-producing nation has already been affected this year by the closure of unapproved or outdated plants, and as the government ratchets up its safety and environmental oversight. On Monday, in advance of the production curbs over the most-polluting months of November to March, the nation’s biggest steel hub, Tangshan city, shuttered ha...
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