How China Disrupted Global Commodities: The Reshaping of the World’s Resource Sector

Kaplinsky, Raphael and Farooki, Masuma (2011). How China Disrupted Global Commodities: The Reshaping of the World’s Resource Sector. Routledge studies in global competition. London: Routledge.

URL: http://www.routledge.com/books/details/97804155978...

Abstract

This book examines the impact of China on global commodity prices, focusing on all three major families of commodities - soft, hard and energy commodities. It shows how demand from China is driving prices upwards, and that supply constraints in most commodity sectors limit the response to this increased demand. The participation of financial speculators in global commodity markets affects price formation and confuses the signals sent to producers. as a consequence many northern firms are holding back on investments in these sectors, just as investments form Chinese firms are increasing.