According to General Administration of Customs, China’s trade surplus was USD 16.68 billion in April 2008 up from USD 13.4 billion in March 2008.

Exports in April 2008 rose by 21.8% YoY to USD 118.71 billion, while imports were up by 26.3% YoY to USD 102.23 billion. In the January to April 2008 period, the trade surplus was USD 58 billion as compared with USD 63.3 billion a year earlier. Exports rose by 21.5% YoY to USD 424.57 billion, while imports were up by 27.9% YoY to USD 366.57 billion.

Copper product imports dropped by 11.8% YoY to 953,113 tonnes during January to April 2008 period, while April 2008 imports totaled 246,119 tonnes. China also imported 1.72 million tonnes of alumina in the January to April 2008 period, down by 16.2% YoY while it imported 560,000 tonnes in April 2008.

China exported 14.59 million tonnes of coal in the January to April 2008 period, down by 8.1% YoY, while April 2008 exports stood at 4.39 million tonnes.

Coke exports in January to April 2008 period dropped by 16.6% YoY to 4.28 million tonnes with April 2008 exports stood at 1.34 million tonnes. China exported 16.17 million tonnes of steel products during the January to April 2008 period, down by 23.9% YoY, while April 2008 exports stood at 4.78 million tonnes.

China imported 153.49 million tonnes of iron ore in January to April 2008 period, up by 15.2% YoY, while April 2008 imports amounted to 42.85 million tonnes. Steel product imports were down by 3.7% YoY to 5.68 million tonnes with April 2008 imports at 1.5 million tonnes.

Reuters reported that the Baltic Exchange’s Capesize freight index soared to a record on Wednesday on red hot demand for iron ore into China and increased global coal demand. BCI soared by 588 to a record 16,357 points, surpassing the previous all time high struck in November last year.

Mr Peter Norfolk a senior dry commodities analyst at consultancy Simpson, Spence & Young said that “China’s iron imports in April 2008 were at a new record and they are enormous they are almost 5 million tonnes higher than the previous record month, which is a huge rise.”

He added that “We are also seeing a lot of coal activity, which is positive for tonne mile demand, and US coal exports have made a strong start to the year, making up for shortfalls in supply elsewhere, especially in the Pacific. Everything is still booming pinning the main driving force for the spectacular rise on raw materials demand from China.”

Mr Norfolk said that “Demand for all these commodities is broad based, steel prices are strong everywhere, but in volume terms it is still China.”

A data released by the Chinese ministry of commerce showed that propelled by climbing coke and international steel prices, steel offer in China’s domestic market kept increasing in recent period. The steel prices averaged CNY 5909 per tonne in April 2008 up by 2.32% QoQ from March 2008. In specific, wire rod price rose by 3.75% QoQ, sheet or plate gained 1.5% QoQ, pipe or tube and section increased by 3.05% QoQ.

Amid surging coking coal price internationally, the Chinese coke price accelerates moving up. In Shanxi, metallurgical coke was standing at CNY 2350 per tonne on April 30th 2008 up by CNY 250 per tonne from the end of March 2008. Meanwhile, negotiation with Australian miners of iron ore contract price is still pending, adding to uncertainties of future steel market.

The ministry of commerce predicts that there is further room for steel prices to increase in future, as the cost keeps moving up and rising international market remains.