China’s November commodity imports: Stronger than expected - ANZ

Analysts at Australia and New Zealand Group (ANZ) provide their insights into the latest Chinese commodity trade data released on Sunday.

Key Quotes:

“China’s commodity imports for November were stronger than expected, suggesting economic growth has stabilized after Q3’s softness. With trade tension keeping inventories relatively low, import demand should be well supported into the year-end.

Crude oil imports reached another monthly record high, as independent refiners reacted to a hike in the import quota. LNG imports staged a sharp reversal, after weak October volumes. Low prices are likely to spark some opportunistic buying.

Copper imports for November jumped, recording the highest volume for 2019. Unwrought copper imports rose 12% m/m to 483kt, while concentrate imports were up a similar amount. On a seasonal basis, copper imports were up 5% y/y. 

Iron ore imports continued to level-off from September’s high, suggesting supply issues are still constraining the seaborne market. However, subdued demand from steel mills would not have helped. Coal imports fell from October, amid tighter import restrictions in China.”