Column: China’s commodity import trend driven by prices, not economy
China's imports of major commodities are often viewed through the prism of the performance of, and outlook for, the world's second-biggest economy.
Copper futures fell on Friday on expectations that Chinese trade and economic growth data slated for release next week will disappoint.
The final bid for three-month copper futures on the London Metal Exchange was $8,125 a metric tonne, a mere hair’s breadth from the two week low of $8,105.
Copper has traded between $8,100 – $8,400 per tonne for the past month, fortified by indications of further stimulus measures by the European Central Bank and the US Federal Reserve.
Reuters cites BNP Paribas metals strategist Stephen Briggs as saying uncertainty surrounding the extent of China’s slowdown has impacted trading.
The fall in copper futures reflects concerns over the release of key Chinese data next week, including Chinese trade data over the weekend and Q3 GDP data on Thursday.
Observers expect China’s Q3 data to fall to its lowest point since the GFC for a seventh consecutive quarter of flagging growth.
