A global commodities ‘supercycle’ may be ending as China’s growth slows

A decades-long commodities “supercycle” may be concluding as a result of slowing growth in China.

The construction and manufacturing boom since 2000 in what is now the world’s second-largest economy drove surging demand for iron ore and steel, but use of those goods is shrinking, and China’s oil demand may fall soon, too.

“That engine is over,” the appropriately named Chinese executive Steele Li told the Financial Times. This supercycle has been declared over in the past — the FT itself said so in 2008 — but with China’s economy languishing, it may indeed be ending.

Another one is looming, though: Thanks to the energy transition and growth in artificial intelligence, “a new electricity supercycle is under way,” The Economist said.