China’s exports of copper, diesel and alumina surged in June compared with the same month in 2023, with copper exports surging to a record high as sluggish domestic demand due to weaker-than-expected economic growth weighs on Chinese consumption of goods.
China’s copper exports surged 187% last month to a record high, official Chinese data showed. BloombergDiesel exports have surged 180 percent amid weak domestic demand, a slowdown in the construction sector due to the property crisis and weak domestic demand for the fuel so far this summer.
Furthermore, alumina exports in June increased 109% compared to the same month last year, reaching the highest level in two years.
As exports of key commodities rise, there are growing signs that China needs additional stimulus to get its economic growth and commodity demand back on track for historic gains.
China’s merchandise imports also suggest the economy is weaker than previously thought.
China’s crude imports fell 11% in June from a record high for the same month in 2023 due to weak demand and refining margins, data showed last week.
Refinery production in the world’s largest crude oil importing country 3.7% decrease Crude oil prices fell in June compared to the same month a year ago as weak fuel demand and lower refining margins prompted independent refiners to sharply cut crude processing rates.
China’s apparent oil demand may have fallen 8.1% year-on-year to about 13.7 million barrels per day in June, according to Bloomberg calculations.
Moreover, China’s GDP growth rate in the second quarter was 4.7%. Below expectations It’s 5.1%.
Slowing consumption in China is slowing growth in global oil demand, the International Energy Agency (IEA) said in its monthly report last week.
“Chinese oil consumption, long the driving force behind global oil demand growth, fell in both April and May and is now assessed to be slightly below year-on-year levels in the second quarter of 2024,” the IEA said. SaidIt added that demand for industrial fuels and petrochemical feedstocks in China was particularly weak.
Article by Charles Kennedy of Oilprice.com
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