Long Anticipated Commodity Rally Happening Now: Citigroup’s Liao

The video discusses the current commodity super cycle driven by China's demand, focusing on steel, copper, and aluminium. Iron ore prices have peaked due to strong construction and manufacturing demand, but a mean reversion is expected. China's property and credit markets are under scrutiny, affecting future commodity demand. Copper faces supply disruptions, leading to potential price increases. Palladium is projected to remain in deficit, with prices expected to rise as supply struggles to meet demand.

What is driving the current commodity super cycle?

• Decrease in global supply

• Government subsidies

• Increased demand in China and globally

• Technological advancements

Why are steel prices reaching multi-year highs?

• Strong construction activities and export demand

• Government intervention in the market

• Technological improvements in steelmaking

• Due to a decrease in steel production

What is the expected trend for iron ore prices according to the transcript?

• Prices will remain stable

• Prices will revert to production cost levels

• Prices will continue to rise indefinitely

• Prices will drop below production costs

What challenge are major iron ore producers facing?

• Difficulty in meeting high demand

• Shortage of demand

• Environmental regulations

• Excessive production capacity

What is a potential future trend for China's property development activities?

• Complete halt in development

• Tapering off of new starts and projects

• Rapid expansion of new projects

• Increased government funding

What is causing supply disruptions in the copper market?

• Technological failures

• Supply disruptions in Chile and carbon neutrality goals

• Natural disasters

• Labor strikes

What is the expected price trend for palladium in the near future?

• Prices will decrease due to oversupply

• Prices will stabilize at current levels

• Prices will rise due to tight supply and demand recovery

• Prices will fluctuate unpredictably