Proudly sponsored by

Heavy rain in southern China to hurt steel demand, rice growth

The weather has affected downstream construction activity and is likely to keep demand for steel rebar suppressed.
Image: Bloomberg

Torrential rain and flooding in parts of southern China could weigh on steel and coal demand, and hinder growth of crops including rice.

Regions located south of the Yangtze River including Guizhou, Sichuan and Yunnan will see frequent rains over the next 10 days, according to the National Meteorological Center. Most of these places have been hit by heavy rains and should be alert to secondary impact such as mudslides, the center said.

Last week, floods in Yunnan’s Qiubei county killed four people and several people were reported missing, broadcaster CCTV reported Friday. Yunnan is a major aluminium production hub, accounting for 11% of China’s capacity.

The weather has affected downstream construction activity and is likely to keep demand for steel rebar suppressed ahead of a major holiday later this week, researcher Shanghai Metals Market said in a note Tuesday.

China’s meteorological center also flagged the impact on agricultural output. Precipitation in some southern China regions may be 30% to 70% higher than normal. Continued rainfall is unfavourable to the robust growth of rice crops, and high humidity can increase the risks of pests and diseases, the center said.

High rainfall will likely boost hydropower output and hurt demand for coal for thermal power generation, the China Coal Transportation and Distribution said.

© 2022 Bloomberg

COMMENTS   0

You must be signed in and an Insider Gold subscriber to comment.

SUBSCRIBE NOW SIGN IN

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
BTC / USD

Subscribe to our mailing list

* indicates required
Moneyweb newsletters

Instrument Details  

You do not have any portfolios, please create one here.
You do not have an alert portfolio, please create one here.
INSIDER SUBSCRIPTION APP VIDEOS RADIO / LISTEN LIVE SHOP OFFERS WEBINARS NEWSLETTERS TRENDING

Follow us:

Search Articles:
Click a Company: