China: Trade Balance below market forecast at US$50b - TDS

Research Team at TDS, notes that the China’s May Trade Balance came in at US$50b, below the mkt forecast for a US$55.7b surplus.

Key Quotes

“Exports on the year dropped 4%/yr as expected (external demand was weak) but imports fell a lot less than the market pencilled in, -0.4%/yr vs a near –7%/yr forecast. No doubt the rise in commodity prices would have helped elevate the value of imports. Imports by commodity—Coal +1.2%, iron ore +3.4%, copper +13.5%, refined petrol +20% and cars +20%. Imports of iron ore were the highest since Dec 2015.”