BEIJING (Dow Jones)--China's share of global copper demand rose to 38% in the
first four months of the year from 27% in the same period of 2008, while its
share of global steel demand was 43% compared with 39%.

  Its share of the global soybean trade also increased to 53% in the 2008-09
harvest year, compared with 48% in the previous year, Barclays Capital said in
a note late Wednesday.

  But the recent rally in commodity prices is sensitive to the ebbs of Chinese
demand, it added.

  "In the short term, markets such as steel, base metals and agricultural
markets like soybeans are likely to prove very sensitive to any evidence that
China's recent buying spree is slackening off," the note said.

  Analysts said the third quarter is conventionally a period of slower demand,
as restocking comes to an end.

  Preliminary trade data released last week showed China's iron ore imports in
May, while posting the second-highest volume of the year, fell 6.2% on month.

  Steel imports rose for the fifth month in May to 1.65 million metric tons,
but the rate of increase fell to 1.9% on month compared with a 27.6% on-month
rise in April. China became a net importer of steel in March.

  Copper imports hit another record in May at 422,666 tons, but the rate of
increase also slightly fell to 5.7% on month from a 6.6% on-month rise in
April.

  Soybean imports in May reached 3.52 million tons, well below market forecasts
of 4 million tons and down from April's 3.71 million tons.

  China's demand surge and economic activity have been key factors in
preventing large surpluses in commodity markets and continue to keep their
medium-term prospects strong.

  "The dramatic acceleration in Chinese commodity demand has proved the most
important single influence," aided by government stockpiling, in driving the
recent run-up in commodity prices, Barcap said.

  Other factors that have played into the first half's commodity rally include
rapid supply-side adjustments, especially in oil and base metals - leading
indicators that suggest an imminent pick-up in developed world demand; a weaker
dollar and a recovery in risk appetite.