September 09, 2013
China’s commodities imports of crude oil, iron ore, copper and soybeans fell in August from July’s record highs, but shipments stayed at elevated levels as manufacturing activity in the world’s second-largest economy gains pace. Headline trade data showed China’s overall imports and exports in August were stronger than expected and have sustained the upward trend since July, adding to evidence that the world’s top commodities buyer may have avoided a sharp slowdown.
China is showing signs of a steadying economy after growth slowed for nine of the past 10 quarters, with robust production from steel mills, refineries, power plants and smelters helping to boost consumption of raw materials. “Imports in August may have slipped from a month ago, but they are still at very high levels, which is a reflection of strong underlying demand as the economy recovers,” said Zhang Yu, an analyst at Yongan Commodity Futures.
The Customs Administration said on Sunday that exports rose 7.2 percent in August from a year earlier and imports rose 7 percent, leaving the country with a trade surplus of $28.6 billion for the month.
As recently as a month ago, investors had worried China’s economy was slipping into a deeper-than-expected downturn, especially after its money market suffered an unprecedented cash crunch in June.
But policymakers have stepped in with measures to steady the economy, from quicker railway investment and public housing construction to new policies to help smaller companies with financing needs. Courtesy Reuters
Published in ZaraiMedia.com