It’s been about one month since Chinese Premier Li Keqiang spoke at the World Economic Forum and said that China’s economy is not headed for a hard landing and that it will have no problem meeting growth targets in the near future. Since that time, Chinese commodity prices have been on a tear, with iron ore prices, coking coal prices and Chinese rebar up 18.3 percent, 18.0 percent and 14.5 percent, respectively. Axiom analyst Gordon Johnson projects those prices could be making a sharp turn lower in the second half of the year. “We think this rally is largely rooted in speculation, enhanced by inorganic demand via a renewed inventory restock, indicated by low domestic steel inventory and believe Li Keqiang’s comments could suggest the opposite for commodities,” Johnson wrote.Read more