China's commodities output slows in October

China’s commodity output decreased in October as a credit freeze slowed demand, Reuters reported. Oil refinery throughput fell 0.9% compared to October 2010, although that is expected to reverse with winter heating demands; power generation typically posts losses in September and October before rising for the remainder of the year. Refined copper production fell 2.1% compared to September, hitting its lowest point in five months, while crude steel production fell 3.58% from September as mills closed to prevent excess supply. With housing construction and boat building slowing, a rebound in steel output is not expected soon. Henry Liu, commodities research chief at Mirae Assets in Hong Kong, said that commodities may have bottomed out, but it’s too early to say when a rebound will come. Even with a rebound, however, commodities are not likely to return to 2009 and 2010 growth levels, said Liu.