Metals Gain as China’s Trade Data Shows Exports Accelerating
(Bloomberg) -- Base metals advanced in London as data pointed to surprising strength in China’s overall export activity — an important driver of demand for industrial commodities in the world’s second-biggest economy.
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Growth in shipments from China unexpectedly accelerated in July even in the face of US tariffs imposed by President Donald Trump, as suppliers turned to alternative markets. The total value of exports jumped 7.2% from a year earlier, beating economists’ forecasts for 5.6% growth.
China’s manufacturers have increasingly leaned on exports to offset softer growth at home, a trend which in turn helps sustain commodities demand. Metals are used in large volumes in industrial products — such as air conditioners to cars and consumer goods — that are shipped overseas.
Aluminum on the London Metal Exchange gained for a third day, rising 0.7% to $2,627 a ton by 12:14 p.m. Shanghai time. Copper was up 0.3% and zinc increased 0.7%.
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