China's slowdown doesn't restrain prices

<p>Kia ora, </p><p>Welcome to Monday's Economy Watch where we follow the economic events and trends that affect New Zealand.</p><p>I'm David Chaston and this is the International edition from Interest.co.nz.</p><p>Today we lead with news commodity prices for some key industrial minerals, and producer prices overall are rising faster now.</p><p>But first we should note that <a href="https://www.caixinglobal.com/2021-09-10/china-carbon-watch-carbon-emissions-allowance-prices-continue-to-slide-101771737.html" target="_blank"><strong>China's carbon market</strong></a> seems to stumbling in its early stages. Prices are falling and are now only NZ$9.90/tonne. That is far from the New Zealand price of $65.00/NZU where we ended this week, and the <a href="https://ember-climate.org/data/carbon-price-viewer/" target="_blank"><strong>EU price</strong></a> of NZ$103.50/tonne. It is even above the NZ$25.30 for <a href="https://www.reputex.com/research-insights/alert-australian-carbon-credit-unit-spot-price-ends-the-week-on-a-new-record-high/" target="_blank"><strong>the moribund Australian ACCU carbon market</strong></a>.</p><p>Meanwhile, China's <a href="http://www.pbc.gov.cn/goutongjiaoliu/113456/113469/4337629/index.html" target="_blank"><strong>new bank lending rose less than expected</strong></a> in August and not really bouncing back from the nine-month low seen in the previous month. Slowing credit growth indicated weakening financing demand from companies as their economy slows.</p><p>Indian <a href="http://mospi.nic.in/sites/default/files/press_release/IIP_PR_july21.pdf" target="_blank"><strong>industrial production</strong></a> rose +12% year-on-year in July, lower than the +14% in the previous month, but above market forecasts of +11%. It is the fifth month of double-digit growth due to low base effects from last year but it does reflect a fast improvement in the past few months.</p><p><a href="https://www.destatis.de/EN/Press/2021/09/PE21_423_611.html" target="_blank"><strong>German consumer inflation</strong></a>