Exports have rebounded off pandemic-lows, reaching an all-time high value in August. Most recent economic data suggests that China's economy been slowing. However, hurdles such as electricity crunches and concerns over the Delta variant of COVID remain challenges for their metals production.
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Summary:
- Year-over-year exports were up 25.6% in August, up from 19.3% in July.
- The value of exports was $294 billion, eclipsing the all-time high set in July.
- Consumer goods such as electronics and furnitures were the bulk of August exports, according to analysts quoted by Reuters.
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AEGIS Thoughts: China's export growth have steadily increased off of initial pandemic lows. Likewise, the value of exports have also steadily increased, albeity witha a brief dip in early 2021. As Reuters recently suggested, the recent bounce in consumer goods exports could be attributed to the upcoming holiday season. As China is the largest consumer of both aluminum and copper, a ramp up in consumer goods production should be supportive to copper and aluminum prices.
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