If this is true, China is in a world of pain coming. The lockdowns are far more extensive than reported. Great thread below. https://t.co/lxo5IlwMRM
— Wall Street Silver (@WallStreetSilv) April 22, 2022
2/ The crux of the problem is trucking. Shanghai has closed its city to many trucks coming in, and the risk of being suddenly asked to quarantine is terrifying enough that even though truck payments to drive there have doubled, no driver wants to do it.
— Liza Lin (@lizalinwsj) April 22, 2022
4/ Truck drivers say instant noodles and portable gas stoves are must-haves on their trips. And videos on social media show them living in their vehicles for days, unable to get out at service stations. Here’s one passing about on the tub they use as a temporary toilet/restroom. pic.twitter.com/nMdeOsTduL
— Liza Lin (@lizalinwsj) April 22, 2022
6/ The spillover is now hitting the ports. Empty containers are stacking up in Shanghai, the world's largest container port. Factories in the Zhejiang and Jiangsu region use Shanghai as a logistics hub, and no trucks into Shanghai = no cargo to fill these containers.
— Liza Lin (@lizalinwsj) April 22, 2022
8/ No cargo means less reason to call at Shanghai's port. Shipping consultants say Shanghai will be hit by a raft of blank sailings over the next 1-2 weeks. Others are shifting to alternate ports such as Ningbo.
— Liza Lin (@lizalinwsj) April 22, 2022
The combination of USDCNY and FXI makes the case that China is in much worse shape than the consensus believes from a global demand perspective…
— Eric Basmajian (@EPBResearch) April 22, 2022
Years of 6.6% GDP, electricity quotas to measure PMIs based on empty factories working, failed CCP planned infrastructure investments nobody needs, building castles on the sands using $$$ debt, hardcore lockdowns because they afraid they'll lose their power are getting "CHECKED".
— GregTheAnalyst (@Analyst_G) April 22, 2022
#China vows to keep cutting crude #steel output this year after logging first drop in six years in 2021 https://t.co/k2bOa4SMtO
— YUAN TALKS (@YuanTalks) April 21, 2022
#China vows to support #coal as main energy source, to increase coal capacity by 300 million tonnes this year https://t.co/zp22yWxc1q
— YUAN TALKS (@YuanTalks) April 21, 2022
Plunge in China’s Markets Intensifies as Yuan Hits One-Year Low
“The PBOC is looking to provide further support for the economy, and seems intent on pulling as many levers as possible, perhaps with the exception of lowering interest rates for now,” said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. “Allowing the yuan to weaken slightly this week seems to be part of the overall ‘support package.’”