China commodity imports in May beat expectations - 11/06/2012

China's imports of key commodities in May confounded expectations of a fall, with crude oil shipments at a record high and both copper and iron ore imports unexpectedly rising more than 10% from a month ago, data showed on Sunday.

Still, analysts cautioned against drawing excessively optimistic conclusions, as actual demand from users remained weak and the bulk of oil and copper shipments in May was likely to have been moved into storage.

Other data also implied that China's economy is struggling domestically, as prices, output and sales at home flagged while trade stayed buoyant.

China, world's second biggest energy consumer, imported a record 25.48 million tonne, or 6 million barrels per day of crude oil in May, up 18.2% from a year ago. However, implied oil demand inched up only 0.4% in May year-on-year, after April's first yearly decline in over three years.

"For both April and May we reported negative growth in our sales of diesel oil, as industrial fuel consumptions declined," said a fuel marketing official with state-run Sinopec, Asia's largest refiner.

A rebound in Iran crude oil loadings after Beijing and Tehran resolved contract disputes in late March, as well as increases in West African oil imports due to attractive pricing may have contributed to the surge in crude shipments, said a Beijing-based crude oil trader.

Imports of copper, of which China is the world's largest buyer, climbed to 419,741 tonne, 11.9% more than April and 65% above year-earlier level.

The rise surprised traders and analysts who had expected that weak demand, high stocks and strong spot prices on the London Metal Exchange would cut arrivals for a third month.

"I can only think of one reason: Players relocated some copper from the United States to Shanghai and the metal arrived in May," said Xiao Jing, an analyst at Beijing Capital Futures, referring to refined copper.

Commodity prices drop on China and US slowdown worries - 09/06/2012

 Commodities fell a second day, heading for the longest weekly losing streak in 11 years, on concern a slowdown in China and the US, the world's two biggest economies , will cut demand.

Oil fell a second day in New York, heading for the longest run of weekly losses in more than 13 years, on speculation the economies of the US and China, the world's biggest crude consumers, will slow and curb fuel demand. Futures dropped 3.3%.

Oil for July delivery decreased $2.82 to $82 a barrel in electronic trading on the New York Mercantile Exchange, and was at $82.30 at 12:02 pm London time. The contract slipped 0.2 % to $84.82 on Thursday, the lowest close since June 5.

Prices are down 4.9% this month and poised for a sixth weekly decline, the longest losing streak since December 1998. Oil has fallen 17% this year. Copper traders are the most bullish in three months as China, the biggest buyer, reduced interest rates to bolster growth, increasing expectations that prices will rebound from the longest slump in two years.

Stockpiles in warehouses monitored by the London Metal Exchange, the world's largest metals bourse, declined 38% this year. China, which accounts for 41% of global demand, cut interest rates for the first time since 2008 on Thursday after growth slowed for five consecutive quarters.

Commodities headed for the longest weekly losing streak in 11 years after Federal Reserve chairman Ben S Bernanke declined to specify options for further easing and German exports fell. Sugar slipped 15% to 19.74 cents a pound on ICE Futures US in New York this year.

Prices rallied this week as rains disrupted the harvest in Brazil, the world's biggest producer. There was a marginal change in the futures prices of sugar on the NCDEX for all the traded contracts.

COMMODITIES-Fed letdown, China data fears fuel slide - 08/06/2012

Commodities fell on Friday, disappointed by the U.S. Federal Reserve's reticence to jump in and stimulate the world's largest economy amid worries that a surprise Chinese rate cut suggested its economy was performing even worse than expected.

Gold slipped, Brent lost more than $1 and copper dropped 2 percent to snap a two-day rise as the dollar strengthened after U.S. Federal Reserve Chairman Ben Bernanke, in a speech on Thursday, gave no hint that stimulus measures are on the way.

A stronger dollar makes commodities priced in the greenback more expensive, and so less appealing, for investors using other currencies.

Investors had been waiting for signs of a third round of large-scale bond buying by the Fed to revive an economy that is looking increasingly fragile, and especially as Europe's financial woes appear to be worsening.

China's surprise interest rate cut, the first since the global financial crisis since late 2008, had initially perked up financial markets, as it suggested the world's second largest economy was addressing its slowing growth.

But that was before some investors became convinced the government may be trying to pre-empt the impact of a slew of dreadful data due out this weekend.

"The Chinese decision was a bit surprising. Cutting rates did signal that they are pre-empting something that either they know about or just a risk that's clearly ahead of us," said Jeremy Friesen, commodity strategist at Societe Generale in Hong Kong.

Brent crude for July delivery was down $1.41 at $98.52 a barrel by 0421 GMT. It fell as low as $98.26 earlier, dropping for a second straight session and purging weekly gains to trade largely flat from last Friday.

U.S. oil slid more than $2 to a session low of $82.59 per barrel, before cutting losses to trade at $83.07, down $1.75. If it sustains losses, U.S. crude is heading for a sixth consecutive week of decline.

London copper fell 2 percent to $7,348.25 a tonne, also at risk of extending its losing streak to a sixth week.

Gold shed 1.4 percent to $1,567.19 an ounce, falling for a second session and eyeing its second weekly loss in three weeks, after Bernanke's comments dampened gold's appeal as a hedge against easing.