Click here for a good article on falling prices of commodities.
It also means those countries like Brazil, Australia, Russia, Peru... which supply China with commodities will also fall.
China is moving up the product chain with higher value products and its internal market is growing fast. China is stockpiling many commodities when the prices dip. I hope India and other low-wage countries will pick up the cheap consumer products that China is forced to abandon due to the higher living standard.
The tires over manufactured in China is due to U.S.'s tariff. I see soft landing in China, but they will recover faster with the high foreign reserve. I'm not that pessimistic.
Commodity prices also depend on the value of the currency. Gold does not appreciate that many times, but the USD depreciates.
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