China's imports of major industrial raw materials decreased in July

In a new sign of the fragility of China's economic recovery, imports of major industrial raw materials decreased in July. According to data from the General Administration of Customs of China, the country, which is the world's largest importer of crude oil, iron, steel, copper and coal, saw its imports of these items decrease in the first 7 months. The country imported 43.69 million tons of crude oil in July, while oil imports decreased by 18.8 percent compared to the previous month. The amount of imports fell to its lowest level since October 2022. It is estimated that the increase in international oil prices also played a role in the decline in July. The price of a barrel of Brent oil, which was $70 in May, has risen to $85. On the other hand, oil imports reached 326 million tons in the first 7 months of the year, increasing by 12.4 percent compared to the same period last year. It is predicted that the decrease in the base caused by the Covid-19 restrictions in cities with large populations and critical industries and business lines, especially in the country's largest city Shanghai, in the spring and summer of last year in China also had an effect on the increase. Iron, steel and copper According to the data of the China Iron and Steel Association (CISA), iron ore imports were 93.48 million tons in July, decreasing by 2.1 percent compared to the previous month. Imports reached 669.4 million tons in the first 7 months, increasing by 6.9 percent compared to the same period last year. Steel imports, on the other hand, increased by 10.8 percent compared to the previous month with 678 thousand tons in July, but decreased by 32.6 percent in the first 7 months to 4.2 million tons. Raw and processed copper products also increased by 2.7 percent compared to the previous month with 452 thousand 159 tons, and decreased by 10.7 percent in the first 7 months, decreasing to 3.04 million tons. Coal On the other hand, coal was an exception among major industrial raw materials by recording a significant increase in the first 7 months. Although coal imports fell slightly behind the 39.97 million tons in June with 39.26 million tons in July, they increased by 86 percent in the first 7 months compared to the same period of the previous year, reaching 261 million tons. The increase was due to the drought in the summer months reducing hydroelectric production while increasing electricity demand. The general decline in imports continues In China, exports decreased by 14.5 percent annually in July, recording the fastest decline since February 2020, when the first effects of the Covid-19 outbreak were felt, while imports decreased by 12.4 percent. Imports showed a recovery trend with a 1.4 decrease in March after a 10.2 percent annual decrease in the first 2 months, but continued to decline in the first 6 months by decreasing by 7.9 percent in April, 4.5 percent in May, and 6.8 percent in June.