China is one of the leading world economies. There is a possibility of commodities prices going up in 2019. But the China commodity market is dealing with an unprecedented number of disruptions including China and USA change in tariffs. As the world’s biggest buyer of natural resources made the presence of China felt on demand for crude oil, iron ore, coal, and purified natural gas. China’s extreme demand for major commodities is likely to remain the most determining factor influencing demand and supply in 2019.
Due to constraints in domestic gas inputs in China and the capacity limitations for pipeline imports, this means that liquified natural gas imports will increase in 2019 even if the price remains high. Secondly, China’s increasing use of natural gas has resulted in a decrease in coal import in China.
China has now boosted domestic production, this means that imports may find the going tougher this year. There is a possibility of iron ore markets in China will receive an increasing quality premium high-quality grade ore, which will, in turn, boost the fortunes of some producers but affect those in India which are majorly known for low-grade ore. Despite the efforts of the Organization of the Petroleum Exporting Countries and its allies to control the supply of oil to China, the oil demand is dominated by China.