China is the big commodity consumer

Sources: Bloomberg, U.S. Department of Agriculture, World Bureau of Metal Statistics, and Wells Fargo Investment Institute. Annual data from January 1, 1980 to December 31, 2020. The commodities markets are considered speculative, carry substantial risks, and have experienced periods of extreme volatility. Investing in commodities is not appropriate for all investors. The commodities markets are considered speculative, carry substantial risks, and have experienced periods of extreme volatility.

Key Takeaways

  • China has become the world’s largest commodity consumer, accounting for roughly half of the world’s demand for industrial metals.
  • We believe commodity investors should keep an eye on China. If China’s economy falters, we could see a pause in the commodity bull super cycle.