The China reopening trade for commodities is showing signs of flagging, as weak demand offsets speculative bets that the end of Covid Zero will reignite growth.
Although there seems little doubt that the economy will bounce back this year, questions over the timing and degree are capping prices from copper to coal and crude oil. Highlighting the uncertainty, Caixin’s report on Wednesday showed that manufacturing shrank for a sixth straight month in January, undercutting a more positive reading on factory activity from the statistics bureau the day before.