China’s March crude imports dropped 6% on the year – JLC

China’s crude oil imports declined in March, market intelligence provider JLC reported citing data from the General Administration of Customs (GACC).

PHOTO: Crude oil barrels and the Chinese flag on a world map. Getty Images

China’s total crude oil imports were about 49.05 million mt in March, JLC reported.

On a daily basis, the country imported around 11.55 million b/d of crude oil in March, down around 6% from 12.32 million b/d during the same time in 2023, JLC reported. 

“The fall could be attributed to a high base a year before when the imports were near the record high due to recovering demand after the lifting of pandemic-related restrictions,” the report further said, citing GACC data.

Despite the year-on-year fall, the daily imports last month were higher than the first two months of this year combined (10.74 million b/d), as cargo unloading at Chinese ports normalised after a long holiday season in February, JLC noted.

The year-on-year fall in China's March crude imports has sparked concerns about weakening demand growth in one of the world’s leading crude oil importers, which could prompt Brent futures to lose upward momentum.

This “lacklustre” import figure has raised questions about China’s stimulus measures and its efficiency towards a complete post-COVID economic recovery, SPI Asset Management’s managing partner Stephen Innes said.

“Recent updates from Beijing indicate that the world's second-largest economy grapples with subdued domestic demand and the looming spectre of deflation,” he added.

China is expected to see a drop in crude import in April, as more refineries ramp up maintenance work, JLC said.

By Aparupa Mazumder 

Please get in touch with comments or additional info to news@engine.online