The commodity markets came under pressure to start the week as traders tried to shed risk over shipping concerns in China. The bearish sentiment was driven by fresh COVID-19 concerns in China that caused officials to shut down transportation amid a two-pronged lockdown.
Government officials in Shanghai announced rolling lockdowns in order to conduct coronavirus testing. In the city of 26 million people, residents will be barred from leaving their homes. There’s concern any suspension of commercial activity in Shanghai will have global ripple effects.
The city is one of China’s primary centers for finance, manufacturing and trade. Shanghai has been the world’s busiest port when it comes to container volumes since 2010.
Even though Chinese state media says the port continues to operate, other reports say that trucking services in and out of the city will be severely impacted...and several warehouses are closed.
All this is coming as officials work to contain an outbreak of a highly transmissible Omincron variant. The restrictions are in place until Tuesday, April 3, 2022.
