China GDP growth, factory data gives no room for optimism

China's GDP growth in 2013 at 7.7% gives no room for optimism for commodities complex and is at the same pace seen in the previous year, analysts said.

China GDP growth has been vital for several commodities in the metals, energy and agriculture complex in recent years. Commodities have witnessed a pull back on China factory output and GDP growth data last week and isn't quite positive for the market in the near to medium term.

Factory production rose by 9.7 percent in December, according to the National Bureau of Statistics .WTI crude Oil and LME copper fell on China data. 

China's commodity imports seem to have picked up towards December, there was broad-based expansion in imports of energy and metals commodities. This was driven by year-end restocking and financing-driven imports,however, full year growth was muted.

"Meanwhile the signs are that consumption of key commodities in China remains strong. The majority of base metals saw their demand growth rates slow in 2013, but they continued to exceed that of the broader economy. Oil demand growth showed some modest signs of slowing. At around 360kbpd, 2013’s expansion was less than 2012’s 400kbpd run rate, but a big improvement on 2011’s 270kpb,"according to Barclays Research.