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.
