Goldman Sachs is still bullish on iron ore and China has set its first ever energy consumption target.
China Sets First Energy Consumption Target
China aims to keep energy consumption within 5 billion metric tons of standard coal equivalent by 2020, it said in its five-year plan published on Saturday, marking the first time the world’s second-biggest economy has set such a target.
China has long been considering an energy consumption cap in a bid to improve industrial efficiency, tackle smog and control greenhouse gas emissions. China’s are the highest in the world. Beijing is also pushing structural reforms to decouple economic growth from energy consumption.
Goldman Sachs Still Bullish on Iron Ore
The rally in iron ore prices will not last in the absence of a significant improvement in steel demand from top consumer China, Goldman Sachs said, as the investment bank stuck to its bearish take on one of this year’s biggest commodity comebacks.