Another month of Chinese economic data (which was dribbled out in a surprisingly vague manner over a number of days) tells us that growth engine of the global economy remains beating and performing well.
It’s not as solid as six months ago, but you can’t say that about any of the world’s other major economies, especially in Europe and the US.
But compared to Europe and the US, many of the main production and import figures were very strong, underlining the difference between it and the rest of the world.
But despite fears it could crash and burn amid tight credit conditions, the economy is maintaining more than enough momentum, high inflation and all.
And while inflation is at worrying levels, the trade surplus in July hit the highest level for more than a year as imports and exports jumped and growth in industrial production slowed.
Production of key industrial metals in China, including crude steel, aluminium, lead and zinc eased compared to June, but was still solid.
Domestic copper production was the second highest on record, oil output rose noticeably, while output of electricity, cement, ethylene (an essential part of the plastic industry) and all the major non-ferrous metals saw higher output, despite drought and power shortages.
Crude steel output is still the best indicator of all for Australia and it eased 1% from June to a still very high 59.3 million tonnes.
Daily average output reached 1.91 million tonnes in July, down from a record 2 million tonnes in June, which is not important as it was more than 15% up on July of last year.
In the first seven months of 2011, China produced 410.36 million tonnes of crude steel, up 10.3% from the same period of 2010.
China’s imports of iron ore rose 6.8% to 54.55 million tonnes in July, the highest level in four months thanks to steel makers restocking ahead of the northern autumn and winter.
Iron ore imports have recovered from the 47.2 million tonne low in June.
China has also lifted iron ore production in July to 116.96 million tonnes in July, up 21.7% from the same month last year.
China imported 1.24 million tonnes of steel products in July, up slightly from 1.2 million tonnes in June, while exports rose to 4.44 million tonnes from 4.29 million tonnes in the previous month.
Oil production and imports are another good indicator for China.
July saw a 5.9% rise in production (lifting output for the year so far by nearly 7%).
China also imported 4.6 million barrels a day of crude in July, down from 4.8 million in June and 5.1 million in May.
The lift in domestic production was bigger than in previous months and there was obviously some substitution of expensive imports with local crude to lower prices by local producers and refiners.
Oil production was only up 1.6% in June from May for example.
China is the world’s second-largest oil consumer and Chinese oil demand has been growing steadily this year even though diesel and gasoline prices in the country are at historic highs because of higher world prices and high demand due to power shortages.
Copper imports and production are also a good indicator (and the imports figures are watched closely in metal markets).
Imports in July rose nearly 10% to 306,626 tonnes from the weak June total.
Copper imports remain under the levels of a year ago, although some analysts say the fall in world prices in the past few weeks could see higher imports later in the year.
Copper production reached a record 478,000 tonnes, up 18% on year.
That’s a real giveaway for import substitution. June was the previous high of just over 480,000 tonnes.
Primary aluminium production fell on the month to 1.548 million tonnes after hitting a fourth consecutive record to 1.591 million tonnes in June.
Zinc output fell 20% to 425,000 tonnes while lead output fell 21% compared to June.
Daily output of refined lead in the month fell to 11,419.4 tonnes, compared with a near record high of 14,867 tonnes in June.
Drought, power shortages, production falls and a government crackdown on battery makers were said to be the main factors for this big fall.
For the month, lead production fell to 354,000 tonnes versus June’s 446,000 tonnes. Zinc was at 425,000 tonnes in July down from June’s 458,000 tonnes.
Soybean imports jumped 8% from a year ago.
