World prices of commodities will continue to be dependent on China's economic growth, regardless whether its economy is a slowed down or not.
Commodity prices posted a brief rally on Monday after a pro-austerity party got the most votes in Greece's weekend elections, but the market's upswing fizzled almost as soon as it began, confounding traders who might have expected developments to lift risky assets for at least a few of sessions.
China, which had been forecast to grow in the 8 per cent to 9 per cent range for the next two years will continue to be the driving force in mining commodity prices. And this will continue even if Europe recovers or continues to sag from its financial woes.
"If the green shoots of recovery in China take place, a mild recovery in prices is likely," Rodrigo de Rato, former managing director of the International Monetary Fund (IMF), said at the Diggers and Dealers mining conference in Kalgoorlie.
Although Chinese commodity consumers continue to be restrained in the conduct of their business, most however expected an improvement in the last remaining months of 2012, Mr de Rato said, noting its demand for iron ore and aluminum will continue to forge on despite the global fiscal crisis.
Mr de Rato's observations seem to have been echoed by China's very own resources minister who confirmed the country will continue to rely on overseas resources to fuel the world's second-largest economy, amid the fact of the stockpile of varied minerals and metals China is building up.
"Given the unequal distribution of resources, there are very few nations that can meet all their own minerals requirements," Mr Xu told the 34th International Geological Congress in Brisbane.
"We will rely first and foremost on our own resources and will step up our domestic production of minerals."
China may have more than sufficient supplies of tungsten and tin, but it has little of iron ore, among others.
To contact the editor, e-mail:
Most Popular Slideshows
- Omar Borkan Al Gala: Facebook Page Recovered, “Too Handsome” Guy “Too Hot” He Could Reach Staggering One Million (1M) Followers in Days!
- Robert Pattinson-Kristen Stewart: Twilight Lovers To Bring Back Love at 2013 Cannes Festival [PHOTOS]
- Angelina Jolie Double Mastectomy: Other Celebrities Who Also Went Through the Surgical Procedure [PHOTOS]
- IN PHOTOS! A Picture of Sadness in Kristen Stewart as Robert Pattinson Celebrates 27th Birthday ALONE? [SLIDESHOW]