China’s Imports Update: Iron Ore, Copper, Coal, and Oil Trends for May
The latest data on China’s imports for May has revealed some interesting trends in key commodities such as iron ore, copper, coal, and oil. While iron ore imports remained strong, oil imports saw a decline, possibly due to weak refining margins and the increasing popularity of new energy vehicles.
China’s iron ore imports exceeded 100 million tonnes for the third consecutive month in May, reaching 102.03 million tonnes. This upward trend has led to a significant increase in portside inventories, reaching the highest level since April 2022. For the first five months of 2024, iron ore imports totaled 513.75 million tonnes, a 7% year-on-year increase.
On the other hand, coal imports in May rose by 11% compared to the previous year, as lower domestic output led to higher inbound shipments. Despite a slight decrease from April, coal imports for the first five months of the year were up by 12.6% compared to the same period in 2023.
Copper imports continued to surge in May, despite record high prices, with a 16% increase from the previous year. This unexpected growth was attributed to factors such as sanctions on Russian metals and increased shipments from the Democratic Republic of the Congo. However, imports of copper concentrate saw a decline, indicating challenges in securing materials for China’s processing sector.
In contrast, crude oil imports in May fell by 8.7% year-on-year, as refiners scaled back purchases due to plant maintenance and subdued profit margins. The rise of new energy vehicle sales also contributed to slowing demand for petrol, impacting oil imports.
Overall, China’s imports reflect a complex interplay of factors such as market conditions, policy changes, and technological advancements. It will be interesting to see how these trends evolve in the coming months and whether China will take further steps to address issues such as carbon emissions and energy security. Stay tuned for more updates on China’s import dynamics.
