(Reuters) – China’s imports of soybeans and copper fell in October from a year earlier, while those of crude oil and iron ore rose, data from the General Administration of Customs showed on Monday.
China’s exports and imports unexpectedly contracted in October, the first simultaneous slump since May 2020, as surging inflation and rising interest rates hammered global demand while new COVID-19 curbs at home disrupted output and consumption.
KEY POINTS:
* Crude oil: October imports rise 14% from a year earlier to 43.14 million tonnes
* Iron ore: October imports at 94.98 million tonnes vs 91.61 million tonnes a year earlier
* Soybeans: October imports fall 19% from a year earlier to 4.14 million tonnes
* Copper: October imports fall 1.5% from a year earlier to 404,414 tonnes
Preliminary table of commodity trade data
Below are comments from analysts on the commodities data.
Comment on soybeans
DARIN FRIEDRICHS, CO-FOUNDER OF SHANGHAI-BASED AGRICULTURE CONSULTANCY SITONIA CONSULTING:
“Crush margins have been bad most of this year, which has weighed on imports. The very weak imports in October have pushed cash meal prices to extremely high levels. Imports should pick up in November and December, but for right now, the market faces a very tight soybean supply situation.”
Comment on copper
CRAIG LANG, SINGAPORE-BASED ANALYST AT CRU GROUP:
“Last month, China’s imported cathode premiums spiked to as high as $140-$150… Chinese import arb opened for a period and because stocks in bonded warehouses were very low, there was a bit of a short squeeze for nearby delivery, (and) the premium went up.”
Comment on crude oil
EMMA LI, CHINA ANALYST WITH VORTEXA ANALYTICS:
“The moderate rebound was due to cooling crude prices in September, including the discounts on Saudi oil supplies. The release of extra refined fuel quotas also helped spur the demand.”
LINKS:
For details, see the official Customs website
(www.customs.gov.cn)
BACKGROUND:
China is the world’s biggest crude oil importer and top buyer of coal, iron ore and soybeans.
(Reporting by Asia Commodities and Energy team; Editing by Subhranshu Sahu)
