(Bloomberg) -- Commodities in China dropped as a surge in the dollar heaped pressure on markets already plagued by concerns over Chinese growth.

Tin led losses among base metals traded in Shanghai, with copper also falling sharply by the midday break. Crude tracked international markets lower. Producer stocks also fell, with the nation’s biggest listed oil company, PetroChina Co., and aluminum giant China Hongqiao Group hitting their lows for the year in Hong Kong.

The greenback climbed to a record high across currencies, making China’s massive import requirements for materials, energy and food more expensive. It’s just the latest in a litany of headwinds to the nation’s commodities demand that include the government’s Covid Zero rules, a property crisis, power outages over the summer, and weaker export markets.

China was forced to set the daily reference rate for the yuan weaker than 7 to the dollar for the first time in two years. In an attempt to slow the yuan’s decline, it also raised the risk reserve requirement on foreign exchange sales.

As the obstacles to growth mount, the focus is increasingly turning to what policy support will be offered at the party congress in October. While few are betting that the meeting will herald a significantly more relaxed approach to the virus, measures to prop up the embattled real estate sector are more likely. 

Local governments, meanwhile, continue to push ahead with infrastructure developments over the peak season for construction, while the nation’s top economic planning agency once again pledged to front-load investment in the sector, including energy projects.

Events Today

(All times Beijing unless noted otherwise)

  • China energy strategy online forum, hosted by China Development Strategy Research Association, 08:30
  • NDRC briefs in Beijing on infrastructure construction, 10:00

Today’s Chart

Solar panels have overtaken wind turbines in the world’s biggest renewables market as manufacturers ramp up output to lead the energy transition. China’s solar capacity rose 1.9% to 349.9 gigawatts in August, surpassing wind, which grew by just 0.2% to 344.5 GW, according to the National Energy Administration.

On The Wire

  • China Mofcom Says to Beef Up Effort to Draw Foreign Investment
  • Asia Coal Shares Tumble as Global Recession Fears Plague Markets
  • China’s State Refiners and Teapots Raise Run Rates, OilChem Says
  • China’s Maike Metals to Sell Assets, Restructure, Chair Tells FT

The Week Ahead

Tuesday, Sept. 27

  • China industrial profits for August, 09:30

Wednesday, Sept. 28

  • APPEC conference in Singapore’s China spotlight, including speakers from PetroChina, and Rongsheng Petrochemical, 09:00

Thursday, Sept. 29

  • USDA weekly crop export sales, 08:30 EST

Friday, Sept. 30

  • China’s official PMIs for September, 09:30
    • Caixin’s China factory PMI, 09:45
  • China weekly iron ore port stockpiles
  • Shanghai exchange weekly commodities inventory, ~15:30

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