Covid restricts the demand for commodities from China in season peak

This winter, the aggravation of the situation caused norovirus epidemics in PRC can negatively influence the foodstuffs and energy products markets. Usually, the consumption grows in this season, but currently, it can be completely different. 

The usage of coal and natural gas strongly depends on the industrial demand for electrical energy. If the government continues to impose strict restrictions related to the work of enterprises, this demand will decrease. People will travel less by air and road, and less fuel will be needed. Markets will be severely damaged. 

Earlier, the situation seemed more positive. At the beginning of the month, the government released a 20-point plan for the anti-COVID policy. It seemed that the government would abandon harsh methods that were ineffective. However, the current negative price outlook is contrary to early sentiment.