China exports slide 4.1pc as demand slows

China’s exports continued to fall in May, but iron ore imports edged higher.

China’s overseas shipments have been an important engine of growth. Pic: AFP

China’s exports in dollar terms continued to fall in May from a year earlier, as global demand for made-in-China products remained sluggish.

Exports slid 4.1 per cent from the previous year after declining 1.8 per cent in April, the General Administration of Customs said.

The figures indicate that China’s overseas shipments, once an important engine of growth, are continuing to drag on its overall economic performance.

May’s figure for exports was slightly better than a median forecast for a 4.6 per cent decline by 16 economists polled by The Wall Street Journal.

Imports declined 0.4 per cent in May from a year earlier, compared with a 10.9 per cent drop in April. The decrease was smaller than the poll’s median forecast for a 6.6 per cent drop.

China’s trade surplus widened in May to $US49.98 billion from $US45.56 billion in April, but fell short of a median forecast for a $US59.65 billion surplus.

In yuan terms, China’s exports rose 1.2 per cent in May from a year earlier, compared with an increase of 4.1 per cent in April.

Imports in May rose 5.1 per cent in yuan terms from a year earlier, compared with a 5.7 per cent drop in April, the agency said.

China’s trade surplus in yuan terms widened to 324.77 billion yuan in May from 298 billion yuan in April.

In April iron ore import volumes edged higher to 86.75 million tonnes from the 85.77 million tonnes imported in March, according to China customs data.

Year to date, China’s iron ore imports are now up more than 9 per cent to 412.15 million tonnes, although the US dollar value of those imports has slipped almost 17 per cent to just over $US20.3bn.

In 2015, imports rose 2.2 per cent to a record annual high of 952.72 million tonnes.

In March China paid an average of $US45.30 a tonne for a total bill of $3.88bn, by April the average price had increased to $US57.75 a tonne for a total monthly iron ore bill of $5.01bn. Though this remains well below the average price of $US99.95 a tonne that the country’s steelmakers were shelling out in 2014.

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