China cuts growth forecast placing downward pressure on commodities


Economic growth of 7.5 per cent is expected in China this year, its Government has announced.

The country has set a target of 8 per cent in each of the last eight years and regularly exceeded it, but is now looking for more stable expansion.


Chinese Premier Wen Jiabao said: “I wish to stress that in setting a slightly lower GDP growth rate, we hope…to guide people in all sectors to focus their work on accelerating the transformation of the pattern of economic development and making economic development more sustainable and efficient.”

Last year, China has GDP growth of 9.2 per cent.

Meanwhile commodities trading giant Glencore has reported a 28 per cent increase in revenue up to 31 December 2011 to $186.2 billion (£117.7 billion). Prices for crude oil, copper, wheat and gold were all higher in 2011 than 2010 driving the increase in revenue. The 39 per cent rise in oil in particular drove up its revenue, according to the company.

This morning Brent Crude oil slipped 15 cents to $123.49 a barrel at 8:16am.

Copper on the LME was down 0.3 per cent this morning to $8,552 (£5,407), while aluminium fell 0.7 per cent to $2,311 (£1,461).