Is the global economic slowdown finally slowing down China? It would seem that way if you look at the decline in imports of iron ore and copper in the month of June from Australia. If the trend continues the current boom to the Australian economy from iron ore and copper exported from Australia may take a hit over the next few months.
Both BHP Billiton and Rio Tinto will see a drop in their earnings for the second half of the year if the 9.1% fall in June from May is anything to go by. The markets may need to see both companies addressing the noticeable slowdown of Chinese iron imports.
Copper imports by China fell for the third consecutive month this June. Grave concerns are being raised over the demand of copper and the global economic recovery. The reduced orders are reflective of the first quarterly decline since 2008.
As per an analyst at Standard Chartered Bank the drop may attest to importers growing uneasy about the economic recovery and their expectation that the demand for the base metal will be reduced in the second half of the year.
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Joel, originally from the UK, emigrated to Australia in 1995 and spent 5 years working in the mining industry as an exploration Geo-technician where he developed skills in GIS Mapping and CAD.
Joel also spent a year working underground in a gold/copper mine. Upon moving to the North Coast of NSW, Australia Joel worked as a graphic designer for a leading consultancy firm before starting a successful business providing graphic and web design services to local businesses on the eastern seaboard of Australia.
Joel is skilled in project management, web programming, design, animation, database and networking, software and editing. Joel has been with AZoNetwork since its inception in 2000.