UBS Global Wealth Mgmt. Dominic Schnider on China's Slowdown

The video discusses the current state of base metals, highlighting inventory shortages and production cuts in Europe and China. It explores the inelastic nature of demand and the resulting price overshoots, particularly in zinc and copper. The short-term market is affected by energy constraints, while the medium-term outlook depends on China's coal production. The oil market is tight, with potential demand destruction due to high prices. The energy crisis impacts long-term contracts and inventory strategies, especially in China.

How might manufacturers adjust their purchasing strategies in response to high commodity prices?

What are the potential long-term effects of the energy crisis in China on metal prices?

What role does inventory holding play in risk management for companies dealing with commodities?