China's imports of key commodities fell sharply in February compared to January, with official data showing declines across multiple sectors, according to a report. The Lunar New Year holiday, which occurred in early February 2019, contributed to the drop in trade activity.
Key Import Data ¶
- Copper: 311,000 tonnes imported in February, down from 479,000 tonnes in January
- Crude oil: 39.23 million tonnes imported in February, compared to 42.6 million tonnes in January
- Iron ore: 83.08 million tonnes imported in February, versus 91.26 million tonnes in January
- Soybeans: 4.46 million tonnes imported in February, down from 7.38 million tonnes in January
- Coal: 17.64 million tonnes imported in February, compared to 33.5 million tonnes in January
Analyst Perspectives ¶
Tian Hao, a senior analyst at First Futures, attributed the soybean import decline to U.S. tariffs and delayed purchases of Brazilian beans amid expectations of a U.S.-China trade deal. He noted that African swine fever reduced demand for soybeans.
George Huang, an analyst at Falcon Info in Guangzhou, said coal imports were lower in February but expected a rebound in March and April due to increased utility bookings. He warned that customs scrutiny of foreign coal, particularly Australian supplies, would remain strict.
Seng-Yick Tee of Sia Energy linked strong crude oil imports to demand from the property sector and infrastructure projects. Chris Wu, a copper consultant at CRU, cited holiday extensions for some fabricators as a factor in reduced copper imports.
Fan Lu of Sinosteel Futures explained that iron ore imports dipped in February as mills reduced stockpiling ahead of the holiday and suppliers faced hurricane-related shipment delays.
Context and Background ¶
China remains the world's largest net crude oil consumer and top buyer of copper, coal, iron ore, and soybeans. Official import statistics were published on the Chinese Customs website (www.customs.gov.cn).
Reporting by Asia Commodities and Energy team; Editing by Richard Pullin
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