Monday, March 27, 2023
Market-Reporter
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate
No Result
View All Result
Market-Reporter
No Result
View All Result
Home Commodities

Column: Supercycle, what supercycle? China’s commodity imports fail to impress

MtR by MtR
June 7, 2021
in Commodities
0
Column: Supercycle, what supercycle? China’s commodity imports fail to impress


Workers operate loaders unloading imported coal at a port in Lianyungang, Jiangsu province, China December 5, 2019. REUTERS/Stringer

Related articles

Record outflows from commodity ETPs obscure long-term demand

Record outflows from commodity ETPs obscure long-term demand

August 10, 2022
Pacific Trader: B2Gold bucks the commodity slump

Pacific Trader: B2Gold bucks the commodity slump

August 9, 2022

The bullish shine surrounding commodities may have lost some of its lustre, with imports in May by top buyer China looking distinctly unimpressive, and far from levels associated with a new supercycle.

Imports of major commodities crude oil, iron ore, copper and coal all dropped in May from the prior month, according to customs data released on Monday.

While the various commodities were affected by differing factors, including some more related to supply issues, the decline is hardly supportive of the view that demand for natural resources is so strong that a new period of extended price rallies has started.

Crude oil imports were 40.97 million tonnes, equivalent to about 9.65 million barrels per day (bpd), down from 9.82 million bpd in April and 14.6% below the 11.3 million bpd in May last year.

It was the weakest daily import number this year and came as about 1.2 million bpd of Chinese refinery capacity was offline for maintenance.

However, it’s also worth noting that May arriving cargoes would have likely been arranged in February and March, at a time when crude oil prices were starting to rally, with Brent futures rising from around $54 a barrel at the start of February and ending March at around $64.

Since Chinese refiners stocked up on cheap crude during the price collapse during last year’s coronavirus pandemic and a brief price war between top exporters Saudi Arabia and Russia, they may feel little pressure to import more crude than just enough to cover their refinery processing plans.

China’s May imports of unwrought copper fell to 445,725 tonnes, down from 484,890 tonnes in April, but up from 436,030 tonnes in May last year.

Copper imports may have been disrupted by a new surge of coronavirus infections in China in April, which resulted in border closures in the world’s top exporter of the industrial metal.

But in common with crude oil, the copper price has been surging, reaching a record high above $10,400 a tonne in early May, with the price rallying hard throughout April, when benchmark London 3-month contracts gained 12% over the course of the month.

The strong gains in copper may have led some Chinese buyers to scale back purchases for investment purposes, leading to lower import volumes in May.

IRON ORE, COAL

Iron ore imports in May dropped to 89.79 million tonnes, down from 98.57 million in April, and the weakest monthly figure since 87.03 million in May 2020.

However, the lower May outcome is most likely a result of supply issues, especially from number two shipper Brazil, which is still battling the coronavirus outbreak.

Spot iron ore also reached a record high in May of $235.55 a tonne, according to commodity price reporting agency Argus, and like other commodities it has been enjoying strong gains in recent weeks.

But unlike crude oil and copper, where Chinese buyers may be prepared to sit on the sidelines during a period of elevated prices, iron ore is benefiting from strong steel demand as Beijing’s stimulus spending works its way through the economy.

The authorities in Beijing have tried to force iron ore prices lower through a raft of measures, such as boosting the cost of trading, but their success was only short-lived, and likely to remain that way until iron ore supply rises to closer to potential, or China actually tries to limit steel output, something it shows no signs of doing.

Coal imports were 21.04 million tonnes in May, down from 21.73 million in April and 22.06 million in the same month in 2020.

In the first five months of the year coal imports were 111 million tonnes, down 25.2% from the same period last year.

Some of the decline is self-inflicted as China has placed an unofficial ban on buying coal from Australia, and it has found it hard to source sufficient alternative cargoes from other exporters, such as Indonesia, Russia and the United States.

This has led to some unusual price disparities on various coal grades, with mid-grade Australian thermal coal selling at a steep discount to the higher-quality fuel, mainly bought by Japan and South Korea, while lower-grade Indonesian coal has rallied strongly as Chinese buyers turn to this source.

Overall, the China May trade figures don’t scream out that a commodity supercycle is underway. Instead they tell a story of still solid demand, but growth in imports being constrained by the impact of higher prices and ongoing supply issues.

The opinions expressed here are those of the author, a columnist for Reuters.

Our Standards: The Thomson Reuters Trust Principles.



Source link

Related Posts

Record outflows from commodity ETPs obscure long-term demand

Record outflows from commodity ETPs obscure long-term demand

by MtR
August 10, 2022
0

Latest news on ETFsVisit our ETF Hub to find out more and to explore our in-depth data and comparison toolsInvestors...

Pacific Trader: B2Gold bucks the commodity slump

Pacific Trader: B2Gold bucks the commodity slump

by MtR
August 9, 2022
0

Credit: B2Gold Corp. Hauling ore at B2Gold's Otjikoto Mine in Namibia And unlike its peers, the Vancouver company pays a...

Ford raises prices of electric F-150 pickup amid high commodity costs

Ford raises prices of electric F-150 pickup amid high commodity costs

by MtR
August 9, 2022
0

The all-electric Ford F-150 Lightning pickup truck is unveiled at the company's world headquarters in Dearborn, Michigan, U.S., May 19,...

Commodity Market: Gold price surge marginally

Commodity Market: Gold price surge marginally

by MtR
August 9, 2022
0

Mumbai: Price of gold edged higher marginally in the commodity market. Sovereign gold is trading at Rs 38,240, higher by...

Japan Hands over Emergency Medicines and Commodities for Pregnant Women and Adolescent Girls though the Project “PROMISES” under the partnership with UNFPA – Sri Lanka

Japan Hands over Emergency Medicines and Commodities for Pregnant Women and Adolescent Girls though the Project “PROMISES” under the partnership with UNFPA – Sri Lanka

by MtR
August 9, 2022
0

On 8 August, Ambassador of Japan to Sri Lanka, H. E. Mr. MIZUKOSHI Hideaki handed over essential pharmaceuticals for women...

Load More
  • Trending
  • Comments
  • Latest
Bank of England tells ministers to intervene on digital currency ‘programming’

Bank of England tells ministers to intervene on digital currency ‘programming’

June 21, 2021
Tips for checking smoke alarms during daylight saving time

Tips for checking smoke alarms during daylight saving time

March 12, 2022
GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

GLOBAL MARKETS-U.S. stocks follow Europe up; Treasury yields rise, dollar firm

July 9, 2021
What will Durham County education bonds pay for? A full list

What will Durham County education bonds pay for? A full list

July 8, 2022
African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

African currencies week ahead: Zambia's kwacha seen on back foot, Kenyan shilling up – Business Recorder

0
Maxum Foods releases Global Dairy Commodity Update for June

Maxum Foods releases Global Dairy Commodity Update for June

0
Letter: Perpetual bonds can help states fight hunger

Letter: Perpetual bonds can help states fight hunger

0
United Kingdom ETFs Are Riding the Re-Opening Momentum

United Kingdom ETFs Are Riding the Re-Opening Momentum

0
Investment in overseas real estate surges : The DONG-A ILBO

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022
U.S. inflation CPI report, Wall Street, currencies

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022
Alberta oil production set new record in first half of 2022

Alberta oil production set new record in first half of 2022

August 10, 2022
Industrial Lubricants Market to Reach $71 Billion by 2027.

Industrial Lubricants Market to Reach $71 Billion by 2027.

August 10, 2022

Recent News

Investment in overseas real estate surges : The DONG-A ILBO

Investment in overseas real estate surges : The DONG-A ILBO

August 11, 2022
U.S. inflation CPI report, Wall Street, currencies

U.S. inflation CPI report, Wall Street, currencies

August 10, 2022
Alberta oil production set new record in first half of 2022

Alberta oil production set new record in first half of 2022

August 10, 2022

Categories

  • Asia
  • Bonds
  • Canada
  • Commodities
  • Cryptocurrencies
  • Currencies
  • Emerging Markets
  • ETFs
  • Europe & Middle East
  • IPOs
  • Latin America
  • Mutual Funds
  • Personal Finance
  • Real Estate
  • Retirement
  • Spending & Saving
  • Stocks
  • U.S. Markets
  • Privacy & Policy
  • About Us
  • Contact Us
  • Advertise with us

© 2021 Copyright Market-Reporter

No Result
View All Result
  • Home
  • Markets
    • U.S. Markets
    • Canada
    • Europe & Middle East
    • Emerging Markets
    • Asia
    • Latin America
  • Investing
    • Stocks
    • IPOs
    • Mutual Funds
    • ETFs
    • Bonds
    • Commodities
    • Currencies
    • Cryptocurrencies
  • Economy & Politics
    • Personal Finance
    • Spending & Saving
    • Retirement
    • Real Estate

© 2021 Copyright Market-Reporter