China’s pig-out on commodities comes to an end ?
Thursday, April 21st, 2011The latest commodity update doesn’t inspire – particularly if you’re into this game.
In China, the country that has been buying commodities like copper and iron and coal like there’s no tomorrow has just discovered there is.
Price have plunged this week – so much for the China-files engrossed in telling the world how wonderful it is that Beijing is now going to lead the way out of the recession and show those capitalist pigs out west how to be real capitalist pigs.
Some real figures for real folks.
Refined copper imports dipped 43% compared with last March (2010) and coal imports are down 40%.
And China is now actually beginning to EXPORT commodities it recently IMPORTED.
For example, the amount of refined copper leaving China in March totalled 36768 tonnes, nearly as much as in the whole of 2010 — but valued at $355,5 million, up 17%.
So you’d say that China is now becoming an exporter of a product it controls. But why export when you’re building billions of copper-heavy devices like PC’s and Telecoms goods. Maybe things are slipping in the middle Empire? Vietnam, Philippines, Indonesian labour is now cheaper than Chinese – so the good little Chinese capitalists are keeping the cash but building manufacturing contracts in these countries instead.
Not good for Chinese lower middle class, or stability in the medium term. Or proper growth of China itself outside of a couple of hundred connected billionaires.
China’s oil demand is 10% higher in March 2011 than March 2010.
But that’s actually down 4% on February. Not a great looking graph at the moment. The growth one that is.
