METALS INSIGHTS : CHINA TRADE

Research evidence excerpt

METALS INSIGHTS : CHINA TRADE

rose to USD 100.8/t on the Singapore exchange. VALE (=) sees no evidence of war-related demand destruction in global

metals markets and has experienced swelling margins as the Iran conflict disrupts raw-material flows, said Chief Executive

Officer Gustavo Pimenta. Chinese coking coal futures extended declines following a local media report that authorities in

Shaanxi asked miners to maintain output, after a deadly accident in neighbouring Shanxi last month raised supply and safety

concerns. Gold remained flat at USD 4,330/oz as traders assessed a fragile ceasefire between Israel and Iran and watched

out for signs of progress in the broader Middle East conflict, with concerns over inflation and interest rate hikes in focus

 MACRO DATA THIS WEEK: GERMANY industrial production (consensus 0.3% m/m) today. CHINA CPI (consensus 1.3%

y/y), CHINA PPI (consensus 3.8% y/y) and US CPI (consensus 0.5% m/m) tomorrow. US PPI (consensus 0.7% m/m) on

Thursday. UK industrial production (consensus 0.1% m/m) on Friday.

NEWSFLOW

CHINA TRADE: Export and Import growth beat expectations

In USD terms, China’s export rose +19.4% y/y, beating consensus of +15.0%, thanks to strong global demand for AI hardware. Import

jumped by +27.4% y/y, beating consensus of +26.0% and leaving a trade surplus of USD105.4bn in May.

Key data:

China imports and exports growth (y/y%)

Source: China Customs, Bloomberg

Exports of computers and parts soared +66% y/y in May, the fastest pace since 2010 and accelerating from a +47% gain in the previous

month. Sales of integrated circuits abroad surged +111%, the most since 2013. Shipments to the US rose +36% in May, the most since

2021, extending their recovery. Exports to non-US destinations continued to grow: S.