Where is the Chinese commodities imports slowdown?

Chinese preliminary trade data released over the weekend showed continued strong imports of industrial commodities, especially for metals and crude oil.

Combined Jan+Feb imports of copper and products increased a massive 50% y/y, while aluminium and products imports increased 38% y/y despite a closed arbitrage window for both metals.

Combined Jan+Feb net imports of crude oil increased a strong 10% y/y to fuel the economy, meet rising demand for the agricultural planting season and to fill its emergency petroleum reserves.

Chinese commodities imports will still contribute to tighten commodities markets this year, but imports will probably slow down slightly from recent strong levels. Watch out for further policy easing to support growth in the coming months.

It is too early to call the end of the commodities boom.

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