
Chinese energy imports broadly fell at the start of 2025, after last year’s record shipments of coal and gas created an overhang of supply and demand for oil continued to ease.
Crude oil imports fell 5 percent on-year in January and February to 83.85 million tons as buyers had to scout for alternative supplies after the US tightened sanctions on Russian and Iranian cargoes. Chinese demand is in particular focus this year after imports declined in 2024 for the third time this decade, underscoring how consumption is being undermined by the country’s energy transition and shifts in its economy.
Metals imports also saw sharp drops. The trade figures combine the first two months of the year to smooth distortions caused by the irregular timing of the Lunar New Year holiday.
Faltering industrial demand and a mild winter curbed China’s appetite for power and heating fuels. Natural gas imports fell 7.7 percent, and while coal imports rose 2.1 percent, they were much lower than the peaks hit in the second half of last year.
China’s coal market remains saddled with massive oversupply, which is likely to hinder inbound shipments through the year.
Gas demand is also moderating due to a slowing economy and cheaper alternatives. Liquefied natural gas imports, which make up well over half of foreign supplies, fell to a five-year low in February, according to data from Kpler, as traders diverted cargoes to take advantage of higher European prices.
For metals, copper fell 7.2 percent as demand weakened and China produced more of its own supply, while iron ore plunged 8.4 percent after cyclone disruptions to supply from Australia.
Last year’s record imports of the steel-making material could prove a high-water mark as port inventories remain elevated, while China’s plan to cut steel output this year should weigh on demand.
Among exports, aluminum continued to sag after China ended its tax rebate on overseas sales. And while steel sales rose, they were well off the pace recorded in the second half as trade measures mounted against the flood of Chinese metal swamping world markets.
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