China's imports shrink in April, exports grow at slower pace
Business
Economists in a Reuters poll had predicted no growth in imports
(Reuters) - China's imports contracted sharply in April, while exports grew at a slower pace, reinforcing signs of feeble domestic demand despite the lifting of COVID curbs and heaping pressure on an economy already struggling in the face of cooling global growth.
Inbound shipments to the world's second largest economy fell by 7.9 per cent year on year, while exports grew by 8.5 per cent in the same period after an unexpected surge of 14.8 per cent in March, customs data showed on Tuesday.
Economists in a Reuters poll had predicted no growth in imports and an 8.0 per cent increase in exports.
KEY POINTS:
* Crude oil: April imports at 42.41 mt, down 1.45 per cent y/y
* Iron ore: April imports at 90.44 mt, up 5.1 per cent y/y; Jan-April imports at 385 mt, up 8.6 per cent y/y
* Soybeans: April imports at 7.29 mt, down 9.8 per cent y/y; Jan-April imports at 30.29 mt, up 6.8 per cent y/y
* Copper: April imports at 407,294 t, down 12.5 per cent y/y
Preliminary table of commodity trade data
Below are comments from analysts on the commodities data.
Comment on crude oil
XI JIA RUI, CRUDE OIL ANALYST, JLC, SHANGHAI:
"China's reduction in crude oil imports was partly due to the overall operating range of international oil prices in April being higher than in March, as high oil prices suppressed demand. On the other hand, due to the maintenance period of refineries in China, and a significant increase in crude oil imports in March, the crude oil inventory of oil companies was not low. So, the demand for crude oil was relatively weak."
EMMA LI, CHINA OIL MARKET ANALYST, VORTEXA, SINGAPORE:
"The decline in imports was mainly due to refining capacities off for maintenance, and a buildup in crude inventories following robust March imports."
Comment on copper
ANNA XU, ANALYST, ARGUS MEDIA, SHANGHAI:
"The drop in April imports is in line with expectations. Domestic refined copper output has increased, while demand recovery was stagnant and lower than previously expected. The import arbitrage window remained largely closed throughout April."
Comment on iron ore
PEI HAO, ANALYST, FIS, SHANGHAI:
"According to our model, the usage of imported iron ore increased by over 6 per cent in April, and therefore there is no surprise to see a mild year-on-year increase in imports in the past month; and the growing pace of usage exceeded that of (iron ore) imports last month. So, we believe mills replenished volumes to meet production from ports, which contributed to a relatively high offtake level seen in the month."
CAI YONGZHENG, DIRECTOR, JIANGSU FUSHI DATA RESEARCH INSTITUTE, NANJING
"We expect iron ore imports in May to reach around 98 million tonnes, recording some month-on-month increase as impact of bad weather last month receded and overseas shipments will recover to a normal level."
Comment on soybeans
ROSA WANG, ANALYST, SHANGHAI JC INTELLIGENCE CO LTD:
"The strengthened inspection at customs continued during the whole month of April and that resulted in lower imports than expected."
