The latest Chinese quarterly data is out this week, and it points to a familiar theme for observers. Chinese exports remain strong, driving a record trade surplus, while the domestic economy continues to struggle with weak consumer demand and an anaemic property market.
The New York Times reports:
“China’s National Bureau of Statistics announced on Monday that gross domestic product grew 1.2% from the second quarter of this year. If that pace continues for a year, the Chinese economy will expand at an annual rate of about 4.9%.”
Industrial metals rallied in the markets overnight, except for copper, which fell a modest 0.5%. Gold also edged lower, while energy markets remained at elevated levels.
Thermal coal prices in China are at three-year highs. Breakwave Advisors reports that domestic Chinese coal production is struggling, creating an opportunity for Australian coal exports to capitalise.
This may also help explain the positive market response to ASX-listed New Hope’s (ASX:NHC) announcement that it would acquire Malabar Resources. The acquiring company’s share price often falls after this type of deal, but New Hope shares rose in yesterday’s trade.
Source: Breakwave Advisors
Write to Callum Newman at Mining.com.au
Main image: Unsplash
