SHANGHAI, Jul. 10 (SMM) – According to data from the General Administration of Customs July 10, China’s foreign trades maintained a steady growth since this year with trade surplus growth beyond expectations in June.
During the first six months, China’s total foreign trade reached USD 1.84 trillion, an increase of 8 % YoY. Exports rose 9.2% to USD 954.38 billion and imports were up 6.7% to USD 885.46, leaving a trade surplus of USD 68.92 billion, expanding 56.4%. China's foreign trade in June rose 11.3% from a year earlier to USD 328.69 billion, with exports growing 11.3% to USD 180.21 billion and imports increasing 6.3% to USD 148.48 billion. The trade surplus reached USD 31.73 billion, up 42.9%. Despite the complicated and grim outlook confronting China’s foreign trade, a series of policies and measures for ensuring China’s steady growth and promoting foreign trade expansion will be introduced gradually. In this context, foreign trade is expected to recover if the exacerbating global downturn, particularly the European debt crisis, could be arrested.
With the European economy deteriorating and China’s June PMI dropping to the lowest level since November 2011, nonferrous metals are still weighed on. China announced July 6 its interest rate cuts for the second time this year, and the European Central Bank also lowered its key interest rate by 25 basis points to 0.75%. The loosening monetary policies will provide relaxed monetary conditions for metal markets.
A continuous growth of China’s foreign trade is vital to base metal consumption. SMM believes base metals are expected to pick up under the influence of accommodative policies.