China Exports Rise More Than Expected In June

  • China Exports Rise More Than Expected In June

China Exports Rise More Than Expected In June

China exported 0.73 million mt of coal in June, up 10.61% year on year, the data showed.

A trade increase between North Korea and China during the first six months of 2017 could add to pressure between Washington and Beijing.

The most-traded copper contract on the Shanghai Futures Exchange rose 3 percent in June, its biggest monthly gain since March as global exchange stocks fell, fuelling supply concerns.

China's overseas shipments rose from a year earlier in June as global demand holds up and trade tensions with the USA are kept in check amid ongoing talks. Imports had been forecasted to jump 13.1% easing off the strong but unexpected May jump of 14.8%. This is mostly due to resilient real estate demand in smaller Chinese cities with lax property rules as the authorities are keen to clear a housing glut.

Analysts however say that a slowdown in the demand for materials overseas might already be affecting results.

"Machinery electronics and high-tech products continued to be the main drivers for exports", said Kelvin Lam, greater China economist at HSBC. "But we are sceptical that the current pace of imports can be sustained for much longer given the increasing headwinds to China's economy from policy tightening".

In volume terms, imports of iron ore grew from a month earlier, lifting to 94.43 million tonnes from 91.52 million tonnes in May. "The cooling property market leads to slower domestic investment growth, which may weigh on import growth as well".

The International Monetary Fund expects this year's economic growth to decline to 6.6 percent from last year's 6.7 percent and to below 6.2 percent in 2018.

Labour-intensive products also staged a rebound, with the rate of growth snapping back from 4% for May to 6.2% in June.

That saw the trade surplus grow from $US40.81 billion to $US42.77 billion, marginally topping the $42.44 billion. The trade gap with the United States widened by 88.1 percent to $25.4 billion.