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9 Dec 2015
Chinese exports to EM's very weak - Westpac
FXStreet (Guatemala) - Analysts at Westpac Banking Corporation noted the China’s November trade data was mixed yesterday.
Key Quotes:
"Surplus narrows on a lesser rate of contraction in imports, sturdy raw materials volumes. USD exports came in at 6.8%yr versus 7.0%yr in October, while imports were at 8.7%yr versus 18.8% in October. The trade balance narrowed by $US7.5bn to $US54.1bn.
So much for the headlines. In the details, the drag from weak “shipments” to Hong Kong has eased substantially, which leaves no real excuses for sick looking export growth, which is still materially softer than world trade overall. Sales to extraregional EM are still extremely weak, but trade with the NIEs has stabilised.
Imports of raw materials showed diverse trends, with iron ore volume growth spiking to +21.9%yr (decent month, flattering base); crude oil sound at +7.6%; copper jumping to +24.8%yr; but coal very weak at 23%yr. Processing imports were steady around 7%yr in smoothed terms, implying the assembly trade pipeline remains underwhelming."
Key Quotes:
"Surplus narrows on a lesser rate of contraction in imports, sturdy raw materials volumes. USD exports came in at 6.8%yr versus 7.0%yr in October, while imports were at 8.7%yr versus 18.8% in October. The trade balance narrowed by $US7.5bn to $US54.1bn.
So much for the headlines. In the details, the drag from weak “shipments” to Hong Kong has eased substantially, which leaves no real excuses for sick looking export growth, which is still materially softer than world trade overall. Sales to extraregional EM are still extremely weak, but trade with the NIEs has stabilised.
Imports of raw materials showed diverse trends, with iron ore volume growth spiking to +21.9%yr (decent month, flattering base); crude oil sound at +7.6%; copper jumping to +24.8%yr; but coal very weak at 23%yr. Processing imports were steady around 7%yr in smoothed terms, implying the assembly trade pipeline remains underwhelming."