A Commodities Rebound Is Accelerating at China’s Doorstop
Bloomberg - Aug 19, 2016
China may be slowing, but a commodities rebound is under way and the world’s biggest miner knows where the next growth story is building -- emerging economies in Southeast Asia.
Combined gross domestic product in the ASEAN-5 nations -- Indonesia, Thailand, Malaysia, the Philippines and Vietnam -- will rise about a third to $3 trillion in the five years to 2020, fueling commodities-intensive infrastructure projects. Momentum like this across Asia will help maintain and increase commodity demand, BHP Billiton Ltd.’s Chief Executive Officer Andrew Mackenzie said this week.
“People have been so used to believing that commodities was a China story, and that with China decelerating where’s the growth going to come from?†Nathan Lim, Sydney-based head of research for Morgan Stanley’s wealth management division, said by phone. “That incremental demand is coming from the emerging markets, and that’s the part people don’t have their head around.â€
