China's commodity demand is set to rebound in the final quarter as the world's largest user of energy and metals will see more infrastructure projects and construction, according to Goldman Sachs Group Inc.
Demand growth bottomed out in the second quarter, Julian Zhu, China commodities analyst at the New York-based bank, said at a media briefing in Singapore on Thursday. Copper and cement are among the beneficiaries of the trend, while aluminum and steel will stay weak because of overcapacity, he said.
Growth in the second-largest economy dropped to the slowest pace in three years between April and June, hurting the outlook for commodities. Goldman pared its forecast for China's gross domestic product growth this year to 7.6 percent from 7.9 percent, according to a report on Thursday.
"We expect demand to rebound further into the fourth quarter because of the ongoing resumption of infrastructure projects that were delayed or suspended in the second half of 2011," Zhu said.
China Daily-Agencies
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