Markets in Motion
Shanghai’s Shutdown
The COVID-19 lockdown in Shanghai is impacting China’s energy and commodity markets, along with the country’s overall economic growth. The lockdown also has the potential to extend global supply chain disruptions.
Published: April 21, 2022
Updated: May 2, 2022
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SUBSCRIBE TO THE NEWSLETTERSEconomic Impact
China's Biggest Banks Face Slower Earnings Growth In 2022 Amid Macro Headwinds
Major Chinese lenders will likely report slower net profit growth in 2022 as an uncertain economic outlook weighs on loan growth and net interest margins. 
China Tech Braces For Short, Sharp Lockdown Effects From Shanghai
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READ THE FULL REPORTEconomic Research: Asia-Pacific Economic Risks, Thy Name Is Inflation
S&P Global Ratings expects Asia-Pacific's GDP to expand 5.1% in 2022 as more countries move to living with the virus.
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ACCESS MOREShipping
Asian Lockdowns Prompt Further Uncertainty In Container Market
Prolonged factory shutdowns following coronavirus pandemic outbreaks in China have stoked concerns of escalating port congestion and supply chain backlogs, sources said. 
Insight Congestion in Shanghai (CJK) - Freight Signal Monitor
As COVID-19 lockdown measures were extended from Shanghai to more Chinese cities including parts of Beijing, port congestion rebounded in northern Chinese ports.
READ THE FULL ARTICLEPandemic Restrictions Slow Crude Discharging At Northeast China Port, Impacting Refiners
Restrictions aimed at containing a COVID-19 outbreak in northeast China have impacted crude discharging and land transportation at Yingkou port, slowing feedstock deliveries to at least one refinery in the area, refinery sources told S&P Global Commodity Insights March 18.
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Asia Fuel Oil Market Outlook May Hinge on Severity of China Demand Loss
Energy
Asia's Oil Demand Revival Bears the Brunt of China's Endless Lockdowns
Asia's oil demand outlook for 2022 is starting to look dimmer than what it was a couple of months earlier, as China's strict lockdowns aimed at battling the resurgence of the COVID-19 pandemic overshadow positive oil demand signs emerging from the rest of Asia.
While most Asian governments are easing restrictions, aiding a sustained recovery in oil demand, China is pursuing a zero-COVID-19 policy that has led to a drop in the appetite for transportation and other fuels in Asia's largest oil consumer.
This is prompting oil analysts to believe that China's oil demand growth at best may remain flat in 2022 over the previous year, with the possibility of slipping into the red. As a result, Asia's overall demand growth may drop to relatively modest levels in 2022.
"Asian oil demand growth is expected to slow in 2022 as China's demand has been hit by a resurgence of COVID-19, with lockdown measures imposed across many major cities. Based on our latest April outlook, China's growth will be flat this year, after growing by 550,000 b/d in 2021," Lim Jit Yang, advisor for Asia-Pacific oil markets at S&P Global Commodity Insights, said. 
China Flips to Selling LNG Export Cargoes as Pandemic Curbs Dent Demand
China, the world's largest LNG importer, has become a seller of LNG export cargoes as domestic demand wanes amid pandemic movement curbs in Shanghai and fears of similar restrictions being imposed elsewhere in the country as authorities move decisively to stem the spread of COVID-19.
READ THE FULL ARTICLEMarkets Brace for Oil, Gas Demand Destruction as China Pursues Zero-COVID Policy
China's ongoing COVID crisis is one of the key events driving commodity markets. Widespread restrictions in several key cities as Beijing sticks to its zero-COVID strategy are threatening the country's economic growth outlook.
VIEW THE INFOGRAPHICOPEC Cuts 2022 Oil Demand Outlook On Outbreak In China, Slower Economic Growth
OPEC on April 12 lowered its 2022 global oil demand forecast by 480,000 b/d, citing weaker economic growth along with the outbreak of the omicron variant in China, and indicated the market was in surplus in the first quarter of 2022.
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China Power Crisis
Chinese provinces have implemented power rationing and diverted electricity to critical sectors due to coal shortages and to meet energy intensity targets. China’s tight energy supply for winter and its impact on downstream industries are in focus.
ACCESS MORE RESEARCHMetals & Autos
6 Key Drivers Shaping China’s Steel Market Amid The Latest COVID-19 Surge
Markets have been highly anticipating steel demand recovery and more economic stimulus in the coming months, driving China's steel prices up since mid-March. However, the latest wave of COVID-19 infections in the country poses more challenges to domestic steel demand than steel production.
China's steel production is expected to rise in April, but supply chain disruptions and logistics hurdles across may parts of the country could continue to undermine end-user steel demand.
Here are six things to watch in China's steel sector at a time when the market remains over-optimistic about demand recovery. 
Steel production to continue rising in April
The resurgence of COVID-19 infections in China that started around mid-March and spread across several provinces has not weighed on the country's steel production prospects in April.
Shanghai's Auto Makers Set To Resume Production Despite Rising Infections: Sources
The automobile manufacturers in Shanghai are likely to restart production in the week ending April 23, although it may take a while to achieve full capacity with several workers still isolated and logistics hampered by rising pandemic cases, industry sources said.
READ THE FULL ARTICLEChina's Lithium Consumption To Slow In April As Pandemic Curbs Disrupt Demand
China's lithium consumption is expected to slow down slightly in April from March amid high raw material prices and pandemic-led disruptions, industry sources said March 14.
READ THE FULL ARTICLEHigh Raw Material Costs, COVID-19 Measures Challenge China's NEV Industry
Facing a fresh wave of COVID-19 outbreaks, China's strict lockdown measures are dealing a huge blow to the NEV industry, just two weeks after the industry was left reeling over record-high nickel prices on the London Metal Exchange.
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Struggles in Shanghai
Shanghai’s COVID lockdown is putting China’s economic growth, and the country’s energy and commodities markets, to the test—and threatens to prolong global supply-chain disruptions.
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