China witnesses unexpected fall in its exports and imports along with a price rise in its rebar and iron ore.
The price for Shanghai rebar, the most-traded steel futures contract worldwide, increased by 1% and stood up at 3,638 Yuan/MT in the Shanghai Futures Exchange on Wednesday, July 10, 2013. The rebar price earlier was at 3,579Yuan/MT. The contract had hit a high on May 22, 2013, and was at 3,650 Yuan/MT. The increase in rebar prices have been supported by an increase in iron ore prices in the market at US$ 123/MT after settling at US$ 122.06 on Tuesday, July 09, 2013, from its earlier price of US $120.62/MT.”It just got going after lunch when rebar started to go north quite fast and we had Chinese buyers coming on the swaps. That lifted the market quite sharply,” said Jamie Pearce, Head of iron ore broking at SSY Futures.
Helen Lau, mining analyst at UOB-Kay Hian Securities, Hong Kong, said, “Comments by Premier Li Keqiang that China would not let the economy grow at the lower end of Beijing’s target of 7.5 percent may have drawn buyers back to the market. But unless we see that, I don’t think this rally is sustainable, because China is slowing down and people are starting to get worried.”
There has also been a sudden decline in the exports and imports of China adding to slow growth of its economy. Exports have fallen by 3.1% in June’13 as compared to same period last year. Imports have fallen by 0.7% in comparison to the last year. China, the world’s second largest economy is however trying its best to bring a balance in its economy after they had been hit by the low demand for its exports in the global market.