What do China’s prospects mean for commodity prices?

The growth rate of China’s economy has already halved since 2007, from over 14% to around 7%. What’s more, this slowdown has been the main reason why the prices of many commodities have performed so poorly since 2011. But now that these adjustments have taken place, worries about the downside for prices if China slows a little further seem overdone. Looking ahead, while rebalancing should continue to undermine some commodities, for most we see more positives than negatives.