Reflationary Pressure and China’s Energy Demand

Full-year 2016 Chinese energy data highlight the primary sources of China’s reflationary pressures last year, particularly heavy industrial demand, coal, and steel prices. The uptick in overall energy demand growth in China was mild, from 1.0% in 2015 to 1.4% in 2016. Despite the rise in coal prices, coal apparent consumption fell last year and will be further pressured by rising generating capacity from renewable sources. Tighter money market conditions are likely to impact property construction and energy demand this year.

Posted August 1, 2017
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