China’s exports surged in November, trade surplus hit a record high while imports again showed little growth.
The country’s Customs Administration’s November trade report revealed a 21.1% surge in exports to $US268.07 billion, the strongest monthly growth since early 2018, while imports rose a sluggish 4.5% to $US195.62 billion.
The surge in exports was much faster than the 12% forecast from the market and nearly double the 11.4% growth in October.
The 4.5% year-on-year rise in imports in November was a touch slower than October’s 4.7% growth, and under market forecasts for a 6.1% increase.
But while imports or copper and iron ore hit six and five month lows respectively, imports of oil, soybeans and LNG rose, as did oil.
That surge in exports led to a trade surplus for November of $75.42 billion, the largest since at least 1981 and wider than the market forecast of a $53.5 billion surplus and the $58.44 billion surplus in October.
China’s exports were supported by strong overseas demand for personal protective equipment (PPE) and electronics products for working from home, as well as seasonal Christmas demand from foreign retail channels,
Booming sales of fridges, toasters and microwaves have helped propel China’s manufacturing engine back to life, boosting demand for key metals like steel, gold, iron ore, copper and aluminium, after a sharp slump early in the year.
Imports of unwrought copper and copper products surged 16.2% year-on-year to 561,311 tonnes, imports of iron ore rose 8.3% from a year ago to 98.15 million tonnes. But they fell 8.1% from October’s 106 million tonnes.
Imports of crude oil eased 0.3% to 45.36 million tonnes from a year ago but rose from the 42.56 million tonnes low reached in October as imports made at rock bottom prices earlier in the year remained in tanks at Chinese ports and refineries.
The surge in exports ignored a rise in the value of the yuan last month.
China said goodbye to Donald Trump in the most obvious way – lifting exports to the US and boosting its trade surplus with the most antagonistic trade partner to $US37.42 billion in November from $US31.37 billion in October.
