Thu Aug 15, 2019, 09:52 AM

Chinas commodity imports surge, confound trade war fears

Forget the drop in the dollar value of China’s imports in July, the important numbers were the bumper purchases of major commodities including crude oil, coal, iron ore and copper.

The 5.6% drop in the dollar value of July imports is almost irrelevant and most likely a reflection of lower commodity prices rather than any weakness in the Chinese economy.

Even more bullish for copper was the 41% surge in imports of ores and concentrates to 2.074 million tonnes in July, the highest on record.

While there are temporary factors that may explain some of the strength in China’s imports of major commodities, it’s becoming increasingly hard to sustain a case that they are being adversely affected by the ongoing trade dispute with the United States.

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