CANBERRA: China is importing less from Australia. Its global imports have declined by 20 per cent over the first two months of the year. The value of Australian exports to China plunged 29 per cent over the first two months of the year, partly because of falling prices for coal and iron ore.
China’s Customs Bureau said on Sunday the volume of imported coal from Australia was down 45 per cent in January and February compared to the same time last year.
The value of these shipments fell by more than half.
Iron ore held up better, with volume flat but the value was down 45 per cent.
The iron ore price has more than halved over the past year and is trading at about $US60 a tonne, as the Chinese economy slows and the housing market remains weak.
Overall, China’s global exports rose sharply in the first two months of the year, climbing by 49 per cent. Economist said the figures were distorted by a crackdown on illegal trade flows early last year.
“We still see strong headwinds facing China’s exports this year,” ANZ’s chief China economist Li-gang Liu said.
Export orders in the key Purchasing Managers Index had remained below the benchmark level of 50 for five consecutive months, Mr Liu sai
China’s global imports remained weak, declining by 20 per cent over the first two months of the year.
“Weak commodity imports are the major factor in the sluggish import growth, as Chinese commercial banks have significantly tightened the trade financing facilities for commodity traders,” Mr Liu said.
China’s Premier Li Keqiang indicated on Thursday credit would be tightened this year, after five years of record loan growth.
Despite interest rates being cut twice over the past four months the government is actually withdrawing credit from the economy via the loan quotas it issues to banks.
The Chinese economy is set to grow at about 7 per cent this year, its slowest pace in 24 years.
