Both China’s export and import growth were well-above Bloomberg’s consensus forecasts in September. China’s exports rose at the fastest pace in six months at 8.3% y/y in September (Bloomberg est: 6.6%, August: 4.4%) and imports jumped sharply by 7.4% y/y (Bloomberg est: 1.8%, August: 1.3%). In CNY-terms, exports were up 8.4% y/y (August: 4.8%) while imports were similarly higher at 7.5% y/y (August: 1.7%). Due to the larger improvements in imports, China’s trade surplus narrowed to US$90.45 bn from US$102.33 bn in August, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.
China’s rare earth export moderates at a sharper pace in September
“Exports remained buoyed by non-US markets while US continued to be the worst performing major market for China as supply chains diversification accelerates. Export to the US contracted for the 6th consecutive month since Apr, though the decline narrowed to -27.0% y/y in September from -33.1% y/y in August. In September, export growth was led by markets such as South Africa (+23.3%), India (+14.4%), EU (+14.2%), and ASEAN (+15.6%) in particular Vietnam (+24.5%), Thailand (+19.7%) and Indonesia (+17.1%).”
“By key products, the strongest export growth was seen in ships, semiconductors, LCD panels, Chinese medicine and motor vehicles which expanded at a doubledigit pace in September. On the other hand, contractions were the worst for consumer goods such as toys, footwear, handbags and garments as well as commodities such as refined petroleum products and steel/iron products, indicating a slowdown in global consumer demand.”
“China’s rare earth export which is at the center of its tensions with the US, moderated at a sharper pace in September. In volume terms, rare earth shipments fell 30.9% compared to August, to 4,000 tons in September.”
Source: https://www.fxstreet.com/news/china-export-stayed-resilient-in-september-on-strong-demand-from-nonus-markets-uob-group-202510130943
