Chinese exports 3.2% below expectations in May
Export growth in China slowed by a more than expected amount during May, as revealed by data from the National Bureau of Statistics.
Exports rose by 27.9% in May compared to the month before, albeit down from 32.3% in April. It also fell below consensus forecasts for 32.1% growth.
Imports jumped by 51.1%, 7% higher than in April. Despite falling below consensus expectations of a 53.5% jump, it was still the fastest growth in over ten years.
Copper prices fell on Monday too, leading to concerns over a slowing of demand for the red metal. Due its wide usage, copper is looked to as a bellwether of the world economy.
The copper composite was down 2.8% at 446.3¢ around lunchtime.
“The only news that came out since (the dip) is the China export data,” a Singapore-based metals trader told Reuters.
“Friday’s rebound had already run its course, so there’s a need to retrace lower first before it (price) can go up. The medium-long term view is still bullish due to a weaker U.S. dollar,” the trader added, referring to a 1.7% gain in London on Friday.”
Capital Economics said told Sharecast: “We think that trade volumes, which are well above their pre-virus trend, will drop back over the coming quarters. Admittedly, supply constraints should start to ease later this year. But the pandemic-induced surge in demand for Chinese exports appears to be losing momentum and should reverse as global consumption patterns normalise on the back of vaccine rollouts and easing social distancing restrictions.”
“The relatively modest level of the PMI export orders indices – which measure the share of firms seeing rising orders – underlie how concentrated the current strength of foreign demand is, making it vulnerable to a pullback.”
