China's Sluggish Trade Data Puts Pressure on Commodities: A Look at Crude Oil, Copper, and Iron Ore Imports - 08.08.2023

The Commodities Feed: Disappointing China trade data weighs on sentiment

Trade data from China was broadly on the soft side for July, reflecting a demandslowdown for commodities. China’s crude oil, copper and iron ore imports softened as economic and industrial activity slowed. Imports of soybeans remain firm on much higher 'crushing' demand.

 

Energy: China's crude oil imports slow

ICE Brent slipped from highs yesterday and has been trading weak in the morning session today as the focus shifts back to demand-side scenarios. The latest trade data from China shows that crude oil imports in the country fell 19% MoM to 43.7mt (10.3MMbbls/d) in July on lower domestic demand amid higher inventories. That said, oil imports are still 17% higher compared to last year’s low base when the nation was struggling with the Covid outbreaks and extensive lockdowns. China’s crude imports have increased by 12.5% YoY to 326mt for the first seven months of the year.

For refined products, fuel exports from the country increased 56% YoY to 5.3mt in July 2023, as China tries to compensate for weaker domestic consumption, particularly industrial demand for diesel. YTD exports of refined products have increased 46% YoY to 36.6mt over the first seven months of the year. Concerns over supply constraints on Russian refined products might continue to support demand for Chinese fuel products in the near term.