(Reuters) – China’s imports of copper and iron ore rose in March from a year earlier, while those of crude oil and soybeans fell, data from the General Administration of Customs showed on Friday.
China’s March exports fell 7.5% year-on-year, while imports unexpectedly shrank 1.9%, both undershooting market forecasts by large margins, the customs data showed, highlighting the tough task facing policymakers as they try to bolster a shaky economic recovery.
KEY POINTS:
* Soybeans: March imports at 5.54 mmt, down about 20% y/y
* Crude oil: March imports at 49.05 mmt, down 6.2% y/y
* Iron ore: March imports at 100.72 mmt, up 0.49% y/y
* Copper: March imports at 474,000 mt, up 16% y/y
* Coal: March imports at 41.38 mmt, nearly flat y/y
Preliminary table of commodity trade data
Below are comments from analysts on the commodities data.
COMMENT ON COPPER
HE TIANYU, SHANGHAI-BASED COPPER ANALYST AT CRU
“The double-digit growth was pegged at a relatively low base, given copper demand was limited by COVID-related restrictions last March.”
“Meanwhile, buyers booked more shipments in early March with better demand expectations, although actual consumption was dampened by a surge in copper prices later that month.”
COMMENT ON IRON ORE
CHU XINLI, SHANGHAI-BASED ANALYST AT CHINA FUTURES
“Relatively high imports could be because of earlier expectations that steel mills would resume production in the month, which will lift ore demand accordingly.”
COMMENT ON CRUDE OIL
EMMA LI, CHINA CRUDE OIL ANALYST AT VORTEXA IN SINGAPORE
“March’s extremely high Russian imports are likely a one-off on the back of unusually high Far East Sokol arrivals, and the momentum is very likely coming to an end as Russia is cutting crude exports (mainly on the Baltic side). Because of the very high light-sweet crude imports, which will fuel light-distillate production, Chinese refiners will need to push some CPP barrels into exports.”
COMMENT ON SOYBEANS
LIU JINLU, AGRICULTURAL RESEARCHER AT GUOYUAN FUTURES
“The import data is in line with market expectations, reflecting the reality that China’s soybean demand is relatively weak due to weak profits at the livestock sector impacting demand for soymeal. On the other hand, the high cost of imported soybeans this year has also impacted the incentive for Chinese buyers to import soybeans.”
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)
