China's $220-bn stimulus unlikely to reverse global metals meltdown

Extra funds will likely be used to plug Covid-era budget gaps, and won't tackle the bigger issue for metals demand: a subdued property market and a still-struggling manufacturing sector

Commodity investors looking to China to reverse the rout in global metals markets may be disappointed, with Beijing unable to deliver the kind of investment splurge that powered past bull markets.

Authorities are mulling a plan to let local governments sell 1.5 trillion yuan ($220 billion) of special bonds in the second half, according to people familiar with the matter. This potential boost for infrastructure spending helped commodities pare some of their steep losses in recent weeks.

While past waves of Chinese stimulus played a role in rescuing industrial commodities from slumps in global demand -- after the 2008 financial crisis, from