The China-driven surge in commodity prices could soon come to an end, according to a private survey of Chinese businesses.
Contrary to "markets' unremitting faith in the Chinese government campaign to combat" oversupply in metals, "firms are saying quite the opposite. For the sixth quarter in a row, coal, aluminum, steel, and copper each saw capacity rise on net," according to the China Beige Book's early brief of third-quarter data released Tuesday.
"Sector-wide growth took a dive across the board—revenue, profits, output, export orders, volumes, hiring, capex, borrowing, wages, and sales prices," the report said.
The China Beige Book is a quarterly survey of Chinese companies in an attempt to present a more accurate picture of growth. Many question the accuracy of most Chinese government data, since officials may have incentive to inflate or deflate the figures they report in order to show compliance with central policy.