Thursday 20th September 2018

Resource Clips



Visual Capitalist looks at China’s staggering demand for commodities

by Jeff Desjardins | posted with permission of Visual Capitalist

China’s staggering demand for commodities

 

Over 50% of all steel, cement, nickel and copper goes there

The Chart of the Week is a Friday feature from Visual Capitalist.

It’s said that in China, a new skyscraper is built every five days.

China is building often, and it’s building higher. In fact, just last year, China completed 77 of the world’s 144 new supertall buildings, spread through 36 different Chinese cities. These are structures with a minimum height of 656 feet (200 metres).

For comparison’s sake, there are only 113 buildings in New York City’s current skyline that are over 600 feet.

Unbelievable scale

It’s always hard to put China’s size and scope in perspective—and Visual Capitalist has tried before by showing you 35 Chinese cities as big as countries, or highlighting the growing prominence of the domestic tech scene.

This chart also falls in that category and it focuses on the raw materials that are needed to make all this growth possible.

Year of data Commodity China’s % of global demand Source
2017 Cement 59% Statista
2016 Nickel 56% Statista
2017 Coal 50% NAB
2016 Copper 50% Global X Funds
2017 Steel 50% World Steel Association
2017 Aluminum 47% MC Group
2016 Pork 47% OECD
2017 Cotton 33% USDA
2017 Rice 31% Statista
2017 Gold 27% China Gold Association, WGC
2017 Corn 23% USDA
2016 Oil 14% Enerdata

Note: Because this data is not all in one easy place, it is sourced from many different industry associations, banks and publications. Most of the data comes from 2017, but some is from 2016.

China demand > world

There are five particularly interesting commodity categories here—and in all of them, China’s demand equals or exceeds that of the rest of the world combined.

Cement: 59%
The primary ingredient in concrete is needed for roads, buildings, engineering structures (bridges, dams, etc.), foundations and in making joints for drains and pipes.

Nickel: 57%
Nickel’s primary use is in making stainless steel, which is corrosion-resistant. It also gets used in superalloys, batteries and an array of other uses.

Steel: 50%
Steel is used for pretty much everything, but demand is primarily driven by the construction, machinery and automotive sectors.

Copper: 50%
Copper is one of the metals driving the green revolution and it’s used in electronics, wiring, construction, machinery and automotive sectors primarily.

Coal: 50%
China’s winding down coal usage—but when you have 1.4 billion people demanding power, it has to be done with that in mind. China has already hit peak coal, but the fossil fuel does still account for 65% of the country’s power generated by source.

Posted with permission of Visual Capitalist.

Share |

View All: News Stories