Imports on Major Commodities Falls Back due to Tighter Measures in Credit
Chinese imports of major commodities has fallen in May compared to the previous months, as customs data showed that companies are scaling back orders after robust shipments in the previous months has created a overhang on supplies. Plus falling product prices at the back of a sluggish demand also led to the loss making companies to reduce orders from steel mills and crushers while an increase in scrutiny on commodities financing along with tighter credit also weighed on import demand.
Crude imports has fallen more than 9 percent compared to the record high in April, coal, copper and iron ore also fell as these commodities were hit by higher overseas prices. furthermore a strict bank requirement in issuing trade loans dented import orders and high stocks and a poor import arbitrage kept buyers away.
China is one of the world’s largest energy consumer has imported 26 million tons of around 6 million barrels of crude oil in May which bring the total amount of shipment in the first five months of this year of 128 million tons. Copper imports fell 15 percent from a month ago including imports from refined, alloy and semi finished copper products. iron ore imports is stand at 77 million tons 7.2 percent down from May.