China commodity production on the rise while imports decline

China’s production of metals, fuel, and power remained high in October while imports of copper and iron ore fell, leading investors to doubt whether so much material was needed, Reuters reported. Comparisons with demand a year ago are skewed by the global financial crisis, but according to figures released Wednesday, power generation was up 17%, steel volumes rose 42% and copper production rose 28%. Rising production volumes for these and other items necessary for growth, including reinforcing bars, diesel fuel, copper, and aluminum, could indicate strong economic growth. However, iron ore and copper imports slid by about a third and aluminum by half from September. Steel production increased 20% from 2008, prompting fears of an oversupply that were only partially allayed by a 10% increase in exports. Steel export levels remain 41% below last October’s.