China Imports Record Oil, Iron Ore as Economy Expands

China bought record volumes of oil and iron ore in July as automakers, steel producers and builders expanded output to meet rising demand driven by the nation’s $586 billion stimulus spending.

Oil imports jumped 18 percent to 19.6 million metric tons, and iron ore purchases rose 5 percent to 58.1 million tons from a month ago, the Beijing-based customs said today on its Web site. The second-largest energy user and biggest iron ore buyer spent a combined $13.8 billion on the commodities.
Public-work spending and a credit boom have lifted industrial output, boosted revenue at General Motors Co. and spurred a 60 percent jump in property sales. Refiners and mills including China Petrochemical Corp. and Baosteel Group Corp. may be stockpiling commodities in anticipation of rising prices.

“This is a very bullish number and supportive for global oil prices,” said Gordon Kwan, head of regional energy research at Mirae Asset Securities Ltd. “Successive months of robust automobile sales following the implementation of the economic stimulus measures” have triggered the oil import boom, he said.

Bloomberg