September trade data may be somewhat misleading because of two or three extra working days last month, plus the very big holiday at the beginning of October which might have pushed activity into September.
Exports were down 15.2% year-on-year, better than the expected 20-21%.
Imports were down 3.5%, much better than the expected 15%.
Month-over-month figures showed a [...]
Without constant stimulis Chinese excess capacity will likley continue to weigh on prices.
http://blogs.wsj.com/chinajournal/2009/09/25/idle-factories-still-restraining-china%e2%80%99s-investment-inflation/?mod=rss_WSJBlog?mod=chinablog
The Chinese have built capacity for a world in which the US has an ever growing ability to consume more. With their stimulus efforts they have added to that capacity. Once the government directed investment in capacity has been exhausted deflationary pressures should mount.
Despite the bullishness in equities Chinese Steel prices have been falling.
http://www.businessinsider.com/way-better-than-the-bdi-watch-chinese-iron-ore-demand-falling-2009-9
This article ties well with the one I posted with respect to US steel tariffs. It seems that that Chinese stimulus has resulted in massive steel production which is being dumped around the world. They have invested in excess capacity and goods for export. This excess steel production is crowding out local producers who are [...]
Here, Hugh Hendry chief investment officer and Partner at Eclectica Fund walks about in Guanzhou China and observes the empty buildings as evidence of easy lending and excess capacity.
http://www.youtube.com/watch?v=ektMQGbW3wk
Jim Chanos, who is in the attached post has been shorting Chinese infrastructure plays on the basis that China is building out additional capacity for a world dominated by US consumption that no longer exists.
http://www.cnbc.com/id/15840232?video=1246874316&play=1