Commodities Shows Recovery Taking Hold – by Dan Murtaugh, Alfred Cang and Krystal Chia (Bloomberg News – April 7, 2020)

https://www.bloombergquint.com/

(Bloomberg) — From oil to copper to coal, China’s gigantic commodities industry is signaling that the first economy to be flattened by the coronavirus is getting closer to a return to normality.

Bloomberg Economics estimates that most of China was 90%-95% back to work at the end of last week, noting pick-ups in the steel market, construction activity and crude processing.

Those oil refineries, as well as coal-fired power plants, are nearing last year’s operating rates, while metals stockpiles have shrunk from record or near-record levels. It’s a three-month cycle of collapse and recovery marked by perhaps the most heartening milestone for those nations still fending off the worst of the virus: China has now reported zero new Covid-19 deaths for the first time since January.

Here’s a rundown of some key indicators of China’s commodity demand:

Returning Refiners

Throughput at state-owned oil majors and independent refiners is likely to rise to 13 million barrels a day this month from 12 million in March, according to senior officials at the nation’s top processors. That’s nearing the 13.4 million barrels a day averaged over last year.

State-owned giants such as Sinopec are preparing to restore more capacity as the central government pushes for a recovery in industrial activity to shore up economic growth, while some idled private oil refiners, known as teapots, will resume processing in April.

For the rest of this article: https://www.bloombergquint.com/china/the-state-of-chinese-commodities-shows-recovery-taking-hold