However, small changes to inventories in some commodities suggest underlying demand was also better than expected, it said.

“This should be mildly supportive for commodity markets – particularly copper and oil,” it said.

“However, with an early Chinese New Year, we don’t expect the gains to be long-lasting.”

While coal imports picked up from November (+8.9% month-on-month), the seasonal impact remains weak, according to ANZ. Imports fell 35% y/y to 17.6 million tonnes.

“We suspect the weakness could be attributed to thermal coal, as a seasonal warm northern hemisphere winter has seen domestic production remain strong and demand weak,” ANZ said.

Imports of copper and crude oil rose strongly in December (26% and 9.3% y/y respectively). However, while iron ore imports also grew (+11% y/y), a build in port inventory suggests underlying demand remains weak.