Surge in China lending could lead to global economic rebound, stronger chemicals demand

| February 27, 2019

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CHINA may have pressed the panic button again. If the extraordinary rise in January lending is sustained, this would represent the third time in recent history that China has opened the floodgates on new credit. A sustained upswing in lending would obviously result in stronger chemicals pricing, margins and demand. Further upward momentum could be added by a US/China trade deal. As recently last week, I didn’t have the long term context of what China did in January. But now, thanks to the above chart from fellow blogger Paul Hodges, there is a strong case to be made for three episodes of China panic: When the Global Financial Crisis struck, China faced tens of millions of manufacturing job losses because of the collapse of orders from the West. So it said to its bankers, “Go out at lend. I don’t care whom you lend to or how much. Just lend, lend and lend”.

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United Suppliers is a unique, customer-owned wholesale supplier of crop protection inputs, seed and crop nutrients, with headquarters in Eldora and Ames, Iowa. Founded in 1963, United Suppliers is today comprised of more than 650 agricultural dealers (Owners) that operate nearly 2,800 retail locations throughout the United States and parts of Canada. The mission of United Suppliers is to be the supplier of choice while increasing its Owners’ capabilities and competitiveness. To meet this goal, United Suppliers strives to provide Owners with transparent market intelligence, innovative products, reliable market access and customized business solutions. Crop Protection, Crop Nutrients, Seed

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Suppliers

United Suppliers is a unique, customer-owned wholesale supplier of crop protection inputs, seed and crop nutrients, with headquarters in Eldora and Ames, Iowa. Founded in 1963, United Suppliers is today comprised of more than 650 agricultural dealers (Owners) that operate nearly 2,800 retail locations throughout the United States and parts of Canada. The mission of United Suppliers is to be the supplier of choice while increasing its Owners’ capabilities and competitiveness. To meet this goal, United Suppliers strives to provide Owners with transparent market intelligence, innovative products, reliable market access and customized business solutions. Crop Protection, Crop Nutrients, Seed

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