China's crude oil imports plummeted in June to a nearly decade-low amid the Gulf War and a sudden slowdown in domestic demand.
Oil purchases plunged 41% year-on-year to 29.27 million tons, the lowest since October 2016, according to customs data released Tuesday. Compared to May, imports fell 12%, even though the May figure was already the weakest in eight years.
The recent collapse of the US-Iran ceasefire is clouding prospects for restoring supplies through the disputed Strait of Hormuz. The Middle East typically accounts for about half of China's oil purchases. Nevertheless, the market is watching for signs that imports have bottomed out and Beijing will begin replenishing its reserves.
Natural gas imports held up better, rising 3.7% in June to a five-month high of 10.93 million tonnes. These volumes were supported by rising seaborne shipments amid declining domestic production and depleted storage. Although the war with Iran disrupted shipments from the region, which supplies about a third of China's LNG imports, other sources largely offset the decline.
Coal shipments jumped last month after stricter mine safety requirements curbed domestic production. June purchases soared 30% to 42.78 million tonnes, another five-month high. A mine explosion in Shanxi Province in May was the worst coal industry accident since 2009 and triggered a nationwide review. A number of factors—from supply constraints from Indonesia to the impact of frequent rains on hydroelectric power generation—could curb imports in the coming months. Meanwhile, China set a record for peak energy consumption last week, and prolonged heat could deplete reserves and force a surge in purchasing.
Other Commodity Data for June:
Fertilizers. Hormuz also serves as a conduit for global fertilizer shipments. To conserve domestic supplies, China has tightened controls on exports, which have plummeted 48% year-on-year to 2.23 million tonnes, reaching their lowest level since April 2024.
Aluminum. Exports continued to grow, soaring 45% to a record 711,000 tonnes, helping to offset the global deficit caused by the war.
Copper. Imports rose 3.1% to 478,000 tonnes, though this is below the May level as the US continues to attract cargoes ahead of potential Trump administration tariffs.
Iron Ore. Imports increased 6.4% to 112.69 million tonnes, a year-high, amid stronger shipments ahead of the end of the financial year in Australia, where most of China's suppliers are based.
Steel. Exports, helping to offset weak domestic demand, remained strong, increasing 6.6% to 10.32 million tonnes.
Soybeans. Imports rose 11% to 13.55 million tons, a 13-month high, thanks to supplies from Brazil and the United States following the trade truce with Washington. All eyes are on the second half of the year, as Beijing ramps up its purchases of American beans to meet its obligations.