India. 2012 remains strong year for Chinese commodity imports: Barclays
2012-08-23 10:48:14
Strong Chinese imports of commodities to continue this year said Barclays Capital in a commodities research note.
According to the bank year on year rises as "still robust" even though growth has slowed from the rapid rates early in the year.
The most recent data show copper net imports up 27% year on year with sharp gains for zinc and tin as well. Corn imports were up 318% year on year wheat 133% soybeans 10% oil 12% and platinum 102%.
Some pundits suggest the strength in imports despite China s slowing economy is because commodities are being used to raise financing or to fill strategic stocks rather than immediate consumption.
"While we agree these factors have been important in some markets especially copper and to some extent crude oil and some agricultural commodities we think it a mistake to attribute all of the recent strength to factors such as these " Barclays said.
The British bank continued that "Indeed indicators of local demand collected directly from source or calculated independently of trade flows suggest that consumption levels still look very healthy. Production of copper containing products rose by 7% y y in July while (output of) aluminum containing products were up by 23%.
In oil diesel demand was down but gasoline demand grew 17% in July to hit an all time high jet fuel demand was up by 24% and residual fuel oil rose by 9%.2012 is shaping up to be a much stronger year and we expect that trend to persist over the coming months " Barclays concluded.