Graeme Train, China commodities analyst at Macquarie, sees that as a positive, but also notes the data need to be treated with caution.
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The main sources of inflation in China are commodities, mainly oil, iron ore and agricultural commodities.
The rise in demand from China for commodities such as iron ore, steel and petroleum has helped fill government coffers.
The rise of demand from India and China for such commodities bodes well for the continued long-term growth of the economy.
China demand for commodities remains robust, but not as robust as the year before when compared to the previous 12 months.
That has led to concerns that demand for commodities from China may tail off and further impact prices and hurt company profits.
Brazil is to commodities what China is to manufactured goods.
Among other recent changes is a likely increase in the weighting assigned to the Australian dollar due to its position as a key supplier of industrial commodities to China.
Whereas Brazil, Chile and Peru benefit from China's hunger for commodities, Colombia's exporters face difficulties.
Brazil's exports to China are currently dominated by commodities and natural resources such as iron ore.
In part, these woes reflect fears that China's demand for commodities, and hence commodity prices, will falter.
In the past 15 years China's imports of commodities have risen more than tenfold (see right-hand chart, above).
China is now disrupting global commodities markets, influencing the price of gold, and affecting pricing for many soft and hard goods producers around the world.
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We have arrived in Yiwu, the self-proclaimed commodities capital of China.
As Japan rebuilds from the March 11 earthquake, it could drive up the prices of commodities in which China also imports, mainly oil and iron ore.
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These included a bonus from the stabilisation, opening and reform of the economy in the 1990s, and a huge lift in the country's terms of trade, thanks to China's appetite for commodities.
As the world financial system careened toward debacle and then new scrutiny in recent years, unregulated oil and metals traders were at work in relative obscurity in Switzerland building massive businesses, capitalizing on the rise of commodities prices and China.
Markets remained mixed Friday as inflation worries in China kept foreign currencies down and commodities continued to fall.
Glencore already gets 15% of its revenues just from China, the largest consumer of commodities in the world.
Moreover, China demand for all of those commodities kept business flowing, and jobs growing throughout the agribusiness supply chain, according to government data.
Countries such as Australia and Indonesia have fed China's growing appetite for commodities and raw materials such as coal, iron ore and palm oil.
Since China is the biggest buyer of commodities globally any ratcheting down in their ability to buy raw materials could translate to lower prices of those goods.
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The raising of the value of the Yuan can make it less expensive for China to import oil and other commodities but can also increase the price of oil to the U.S. consumers as the value of the dollar continues to decline.
When China lowered the bank reserve ratio, commodities including gold, silver and copper jumped higher.
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Further, an improving Chinese economy could mean higher commodities generally and also prompt China to become more aggressive in relaxing the peg of its currency against the dollar, which would be supportive for gold, he added.
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China is the incremental buyer of industrial commodities (here is a factoid: it is responsible for two-thirds of global demand for iron ore), so even if we have inflation, commodity prices will still decline with plummeting demand when China cuts back.
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China's breakneck pace of development requires commodities that Brazil is well placed to supply.
"Commodities can't appreciate without China being strong, " said Jeffrey Sica, chief investment officer and founder of SICA Wealth Management, which invests in gold.
In its pursuit of energy deals, supplies of commodities and large construction projects, China has gone where many developed nations fear to go.
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