China’s major commodity imports held up well in January and February despite some cooling in activity in both manufacturing services.
Incomplete combined data on imports of major commodities showed a continuation of the solid demand – although at slightly lower levels than in the final two months of 2020.
But combined with the previously reported big rises in exports and imports for the January February period on a year ago (when February was hit hard by Covid-19), China looks like it is still the best performing major economy around the globe.
Iron ore imports in January and February edged up from the first two months of 2020, but they softened noticeably from the final two months of last year.
China’s Customs Administration said on Sunday that iron ore imports in January and February totalled 181.5 million tonnes.
While that was up from 176.6 million tonnes for the same period a year earlier, it was sharply lower than the 196.8 million tonnes imported in November (98.14 million tonnes) and December (96.74 million).
In fact the combined figure suggests imports in both months were just over 90 million tonnes – a solid figure and indicative of continuing demand in winter when there were sintering and coke making smog restrictions in place in many major steel making cities in China.
Still the lower tonnage didn’t stop prices from remaining buoyant through both months.
Chinese steel export jumped 30% from the same period in 2020 to 10.14 million tonnes of steel products.
Steel products imports rose 17.4% to 2.4 million tonnes.
Meanwhile world iron ore prices fell on Friday to be down marginally for the week.
65% Fe fines delivered to northern China (from Brazil) eased $US3/70 a tonne to $US199.20 after hitting an all time high of $US2020.90 a tonne on Thursday. It fell 20 cents a tonne over the week.
The price of 62% Fe fines delivered to Northern China (mostly from WA) fell $US3.87 a tonne to $US174.11 a tonne for a loss of $US1.67 a tonne over the week.
China’s crude oil imports rose 4.1% in the first two months of 2021 to reach 89.57 million tonnes.
That was also much higher than the 83.83 million tonnes imported in November and December of last year.
Imports of crude in January and February was equal to 11.08 million barrels a day (bpd), according to China’s General Administration of Customs. Figures for each month were not given.
China’s natural gas imports (including LNG) rose 17.4% to 20.80 million tonnes for the first two months from a year ago, as cold snaps boosted demand for winter heating fuel, especially in the north of the country.
Copper imports rose as well, up 4.7% in total over the two months. But that was a slower growth rate than the 7.2% rise over January-February 2020.
Imports of politically sensitive soybeans dipped a touch because of weather problems in Brazil – China lifted US buys to compensate.
China said it imported 13.41 million tonnes of the oilseed in January and February, down 0.8% from 13.51 million tonnes a year earlier.
