Chinas energy commodity imports were mixed

China's commodity imports were mixed in the first half of 2021. China's crude oil imports fell 3.0 percent the same period last year, while its natural gas imports rose 23.8 percent the same period last year.

"Since the beginning of this year, the international commodity prices have been on the rise. For example, at the end of June, the CRB index, which reflects the international commodity prices, has increased by more than 25 percent since the beginning of the year more than doubled since the lowest point in the first half of last year. Affected by the rise in international commodity prices, preliminary estimates show that China's import price index was 108.5 in the first half of this year, the contribution rate of price to import growth was 35.4%." Li Kuiwen, spokesman of the General Administration of Customs director of the statistical analysis Department, said at a press conference on imports exports in the first half of the year held by The State Council.

Crude oil imports fall

In the first six months of this year, China imported 266.064 million tons of crude oil, down 3.0 percent the same period last year, imported 752.92 billion yuan, up 16.9 percent the same period last year, customs data showed. "This is the first time China's crude oil imports have decreased year-on-year since 2013. The main reason for this is that the sustained rise in international oil prices has greatly increased the cost of imports, which to some extent has affected the demand for imports." Han Zhengji, a crude oil analyst at Jinlianchuang, said the sustained rise in international crude oil prices has led to an increase in China's crude oil imports.

In the first half of 2021, the spot price of international crude oil will basically follow the trend of the futures market, the favorable conditions at both ends of supply demand will become the main factors supporting the higher oil price. Saudi Arabia's additional production cuts in the first quarter, while OPEC+ production cuts were largely unchanged, prospects for a recovery in global oil demand are improving, investors expect the oil market to remain short of supply. "Oil prices entered the second quarter capped retreated, with OPEC+ agreeing to gradually increase production Saudi Arabia phasing out an additional production cut of 1 million b/d, putting pressure on prices in April. Epidemic blockade gradually relaxed, as Europe the economic reopened, fuel demand outlook is good, especially in the northern hemisphere in summer peak season demand, rebound energy demand inventory continues to decline further boosted optimism, OPEC the IEA two agencies have raised oil demand is expected to support oil prices, return to upward trend in May June. The lack of an agreement in the closely watched u.s.-Iran negotiations, which further delayed an expected increase in Iranian crude exports, also helped." "Han said.

Although the sharp rebound in oil prices has led to the first year-on-year decline in China's crude oil imports in eight years, Han expects the country's crude oil imports to maintain a steady growth trend in the long term, as China's economic growth expansion of the petrochemical industry continue to drive oil demand, as the country is heavily dependent on foreign countries.

Gas Imports rise

According to customs data, in the first six months of this year, China imported 59.819 million tons of natural gas, up 23.8% year on year, the import amount was 136.24 billion yuan, up 9.5% year on year. The increase in import volume is more reflected in LNG. According to Zhongyu Information analyst Zhai Cuiping, this year's cold wave occurred frequently, the temperature plunged in most parts of China in January February, rain, snow fog weather occurred frequently, the city fuel replenish storage residents' heating demand rose sharply, LNG peak regulation supply maintenance task is difficult, import volume increased substantially. Gas imports fell in March as rising temperatures ended the heating season household demand weakened. Although april-May entered the traditional low season of natural gas consumption, the domestic industry commerce fully recovered, the demand for gas power generation increased, the "coal to gas" project continued to promote, the import of natural gas increased again. In terms of import source countries, in the first half of this year, China imported LNG 24 countries, among which Australia still ranked first, Malaysia ranked second, followed by Qatar, the United States Indonesia. The source countries of imported pipeline gas are relatively stable, a total of 5 countries, namely Turkmenistan, The Russian Federation, Kazakhstan, Myanmar Uzbekistan.

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Source: International gas network