Odd - a crackdown on lending? That suggests this week's surprise move by the People's Bank of China to cut benchmark interest rates by 25 basis points and hopefully spur lending is more of a market gesture than a legitimate lifeline to the economy. The latest lending figures in China were disappointing and suggest continued RRR cuts, even after a cut to interest rates, may not excite a Chinese consumer concerned about future growth.
Iron ore demand is to remain soft as overcapacity haunts the country's steel sector. Crude oil will likely need to see further price declines before Chinese demands picks back up. China will continue to refrain from sizeable copper imports and may continue to push copper out of the country as they try to work down inventories.
All of this suggests a continued push lower for these industries: copper, steel/iron ore, crude oil.
No new recommendations or adjustments at this time.