Demand From China: Fact Or Fiction?

A new report from GROWMARK Research debunks the commonly accepted notion that demand from China is driving global commodity prices.

“There is a common assumption that China’s rapid economic growth has resulted in its having an increased demand for and consumption of world commodities, and that China’s increased consumption has driven up global commodity prices,” according to Kel Kelly, GROWMARK economic and market research manager, and author of the report. “Our analysis shows the inverse is true.”

“Demand from China: Fact or Fiction? Why China is not the real driver of commodity prices” shows analyses demonstrating China’s lack of influence on commodity prices, concluding China is not responsible for the majority of the price increases experienced by most commodities over the past decade. Rather, Wall Street investors are responsible for the rise in commodity prices.

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