China: Commodities imports fall from highs but stay elevated

THE country’s imports of crude oil, iron ore, copper and soybeans fell in August from July’s record highs, but shipments stayed at elevated levels as manufacturing activity in the world’s second-largest economy gained pace.

Headline trade data showed China’s overall imports and exports in August were stronger than expected and have sustained the upward trend since July, adding to evidence that the world’s top commodity buyer may have avoided a sharp slowdown.

China is showing signs of a steadying economy after growth slowed for nine of the past 10 quarters, with robust production from steel mills, refineries, power plants and smelters helping to boost consumption of raw materials.

 “Imports in August may have slipped from a month ago, but they are still at very high levels, which is a reflection of strong underlying demand as the economy recovers,” said Zhang Yu, an analyst at Yongan Commodity Futures.

The General Administration of Customs said Sunday that exports rose 7.1 percent in August from a year earlier and imports rose 7 percent, leaving the country with a trade surplus of US$28.6 billion for the month.

Crude oil imports hit a six-month low of 21.43 million tons in August, and were down 17.9 percent from July. Average daily imports stood at 5.05 million barrels per day, off July’s record high of 6.15 million bpd.

But imports in August were still up 16.5 percent from a year ago, taking total shipments in the first eight months of the year to 185.61 million tons, up 2.9 percent from a year ago.

Traders have attributed the monthly decline to overhauls at several major refineries, including PetroChina’s 120,000 bpd Urumqi refinery in the northwestern region of Xinjiang and its 120,000 bpd Daqing refinery in northeastern Heilongjiang.

China imported 69.01 million tons of iron ore in August, down 5.6 percent from July’s record high of 73.14 million, data from customs showed.

Despite the fall, August arrivals were still the third-highest on record and a gain of 10.5 percent from a year ago.

China’s arrivals of anode, refined copper, alloy and semi-finished copper products fell to 387,564 tons in August, down 5.6 percent from July’s 14-month high, confounding market expectations of an increase.

China, the world’s top buyer of soybean, imported 6.37 million tons of the oil seed in August, down 11.5 percent from July’s record of 7.2 million.

Still, August arrivals were the third-highest on record and have jumped 44 percent from a year ago, as domestic crushers boosted imports of cheap South American soy to fatten crushing margins ahead of the holiday season in September and October. (SD-Agencies)