Slower growth in China to constrain demand

As a major consumer of commodities, any slowdown in China’s economy has negative implications for global commodities demand and prices. That said, the impact is actually likely to be quite nuanced. Indeed, we think there is still scope for growth in China’s consumption of some commodities, notably natural gas and some agriculturals. But the bigger picture is that, for now, it is hard to see a replacement for China as the engine of growth in industrial commodities demand.