Steady Trade Growth For China

by Lloyd's List - last modified Apr 13, 2012 02:20 PM

China’s exports grew 8.9% in March compared to the same month in 2011 to $165.6bn, according to China’s General Administration of Customs.

Exports outpaced those for the January-February period, usually lumped together for statistical purposes due to the lunar New Year holidays, when exports grew 6.9% year-on-year.

Nevertheless, the figure is well below the double-digit export growth rates of recent years, due to slowing demand from Europe during first quarter.
China increased its overall imports in March by 5.3% to $160.3bn, lower than the February-March growth figure of 7.7%.

On the bulk side, however, iron ore imports increased 6% year-on-year to 62.9m tonnes in the first quarter of 2012 and in March were higher than the 2011 monthly average of 57.2m tonnes.

This could bode well for capesize rates in April and beyond, according to broker ICAP, even though the March figure was 3.2% lower than in January-February, after rains in Brazil reduced that country’s exports.

Despite solid growth in iron ore imports in the first quarter, rates for capesize vessels languished during the period owing to new deliveries in an overcrowded market. Many owners of capesize tonnage deployed their vessels at rates near operating costs, although rates have edged up in the last two weeks.

According to broker ICAP, this reflects a long-anticipated restocking of iron ore inventories after the flurry of buying in the fourth quarter of 2011.

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