IRON ORE & STEEL
CHINA’S GROWTH PROSPECTS WEAKEN AS ECONOMISTS CUT 2023 FORECASTS
Source: Energy Bulletin – August 20th
Customers at a food market in Shanghai, China. Bloomberg News Economists are turning more bearish about China’s economy, downgrading their growth forecasts further for 2022 and seeing lingering risks into next year as turmoil in the property market and Covid outbreaks persist. The economy is now projected to grow just 3.5% this year, down from a previous forecast of 3.9%, according to Bloomberg’s latest quarterly survey of economists.…FULL STORY
CHINA DEMAND DOUBTS DARKEN MOOD AS MINERS BAULK AT ENERGY COSTS
Source: Hellenic Shipping News – August 20th
Centrally administered group aims to facilitate trade, better guarantee supply
The prospect of a global recession and doubts over economic stimulus in China, the world’s biggest user of raw materials, add to the challenges of mining companies as they grapple with energy costs, raising the risk of downsizing and layoffs.
None of the major diversified miners is under financial strain after years of strong commodity prices
CHINA’S CONSTRUCTION STEEL DEMAND LIKELY TO REMAIN LOW FOR REST OF 2022
Source: Hellenic Shipping News – August 16th
China’s domestic demand for construction steel is likely to remain low for the rest of 2022, market participants told S&P Global Commodity Insights, with the key indicator of excavator sales declining for the fourth straight month in July.
China’s domestic excavator sales were down 24.9% year on year at 9,250 units in July, the second-lowest level so far in 2022 after January, data from the China Construction Machinery Association showed Aug. 11…FULL STORY
IRON ORE PRICE BELOW $100 ON CHINA STEEL CURBS
Source: Mining – August 30th
The iron ore price fell below $100 a tonne for the first time in over five weeks on signs that the crisis in China’s steel industry is worsening.
According to Fastmarkets MB, benchmark 62% Fe fines imported into Northern China were changing hands for $98.63 a tonne Tuesday morning, down 3%. ..FULL STORY
CHINA BOOSTS SPENDING ON RUSSIAN ENERGY TO $35 BILLION SINCE WAR
Source: Mining – August 22nd
China continues to expand its reliance on Russian energy, with purchases of crude, oil products, gas and coal rising to $35 billion since the war in Ukraine began, from about $20 billion a year earlier.
Although import values have been inflated by the global spike in energy prices due to the conflict, China is still taking more volumes, sometimes at discounted rates, from its strategic ally, according to the latest customs figures covering March through July. The increase comes as other countries shun Russian goods as punishment for the invasion….FULL STORY
COLUMN: CHINA STEEL SECTOR TURNING THE CORNER AS DEMAND, MARGINS IMPROVE
Source: Mining – August 29th
China’s steel industry appears to be turning the corner, with output and profitability likely to increase in September as the world’s second-biggest economy finally starts responding to government stimulus efforts.
Steel mills have been signaling that production is likely to rise in September as profit margins return to positive territory and low inventory levels need replenishing……FULL STORY
CHINA’S DAILY CRUDE STEEL OUTPUT DOWN IN LATE JULY
Source: China Daily – August 8th
China’s major steel mills saw their average daily output of crude steel decrease 7.25 percent in late July from that recorded in mid-July, industrial data showed.
The daily crude steel output stood at 1.89 million tons in late July, according to the China Iron and Steel Association…..FULL STORY
HINA’S STEEL INDUSTRY IS IN CRISIS
Source: Energy Bulletin – August 29th
Everyone thought a COVID-19-ravaged steel supply market in China took a turn towards recovery. However, many other hurdles now stand in the way, both long & short-term. Power cuts and muted demand driven by the construction crisis in China stand in the path of growth. Even worse, the cascading effect has affected the supply of critical commodities like coking coal and iron ore……FULL STORY
CHINA TO PROMOTE ADVANCED COAL PRODUCTION CAPACITY
Source: China Daily – August 8th
BEIJING — China’s advanced coal production capacity has been expanded by a total of 490 million tons per year since September, the National Mine Safety Administration told a press conference on Friday……FULL STORY
CHINA’S JULY RUSSIAN COAL IMPORTS HIT 5-YR HIGH AS WEST SHUNS MOSCOW
Source: Hellenic Shipping News – August 22nd
China’s coal imports from Russia jumped 14% in July from a year earlier to their highest in at least five years, as China bought discounted coal while Western China brought in 7.42 million tonnes of coal from Russia last month, data from the General Administration of Customs showed on Saturday. That was the highest monthly figure since comparable statistics began in 2017, up from 6.12 million tonnes in June and 6.49 million tonnes in July 2021.
CHINA’S POWER CRISIS COULD SPARK A SPIKE IN COAL CONSUMPTION
Source: Energy Bulletin – August 19th
Southwestern China is experiencing a massive heatwave, sparking a power crisis in the region. The Chongqing municipal government has ordered factories to suspend production to conserve power. Moody’s Vice President and Senior Credit Officer Boris Kan pointed out the heatwave will only boost China’s reliance on coal-fired generation. ….FULL STORY
CHINA’S JULY COAL IMPORTS SURGE 24% TO MEET PEAK POWER LOAD
Source: CNBC – August 7th
China’s coal imports in July rose by nearly a quarter from June to near the highest levels so far this year as power generators increased purchases to provide for peak summer electricity demand.
The government has vowed to avoid power rationing this year and has urged coal-burning power generators, which supply about 60% of the country’s electricity, to enlarge coal stocks. FULL STORY
CHINA ENERGY: SICHUAN LOOKS TO COAL AS HYDRO DAMS RUN LOW, BUT ‘INSUFFICIENT’ TO ALLEVIATE POWER CRUNCH
Source: SCMP – August 22nd
Western provinces including Shaanxi, Gansu and the Xinjiang Uygur autonomous region have fast-tracked coal shipments to Sichuan in August.
But support for coal-fired power plants alone will not solve Sichuan’s electricity shortages because the province relies on hydropower, analysts say.
CHINA FOCUS: MAJOR RICE-PRODUCING PROVINCE REVS UP DROUGHT RELIEF EFFORTS
Source: Hellenic Shipping News -August 22nd
Despite persisting drought, Cao Liming, a 50-year-old farmer in east China’s Jiangxi Province, is still looking forward to a bumper harvest this year.
Cao contracts about 12.7 hectares of farmland in Zhouxi Township of Duchang County, where the irrigation water source relies mainly on Poyang Lake, China’s largest freshwater lake…..FULL STORY
CHINA’S SOY CRUSHING RATES HIT YEAR-TO-DATE LOW IN AUGUST AS NEGATIVE MARGINS FORCE RUN CUTS
Source: Energy Bulletin -August 5th
Soy crushing plants reduce operations amid sharp losses China’s soybean demand projections revised down for August But soybean oil entering stronger demand season in the month The operating rate at soybean crushing plants in China slumped to a year-to-date low of 53.5% at the start of August amid prolonged negative crush margins and replacement margins, prompting crushers to reduce soybean purchases and cut operating rates at plants, leading to a fall in soybean prices, market sources said Aug. 5. …..FULL STORY
CHINA’S U.S. AG IMPORTS SOAR TO NEW HIGHS IN 2022, BUT VOLUMES VARY
Source: Reuters – August 5th
China is on track to be the leading international buyer of U.S. agricultural products for a third consecutive year, as the total value of exported goods reached record levels in the first half of 2022.
U.S. agricultural and related product exports to China reached $17.5 billion between January and June (H1), up 15% from last year’s record for the period. That surpasses the full-year totals from both 2018 and 2019, when China was largely shunning U.S. goods and prices were low. Soybeans accounted for 29% of this year’s H1 value of exports to China, corn 18%, cotton 11% and sorghum 9%.
HINA TO SPEED BRAZIL CORN IMPORTS AMID UKRAINE WAR, US TENSIONS
Source: AJOT – August 11th
China is taking steps to accelerate imports of Brazilian corn, bringing on a new supplier of the grain at a time when the war in Ukraine has disrupted trade and tensions with the US are soaring.
Beijing will temporarily waive a key clause which paves the way for Brazil, the biggest exporter behind the US, to ship corn to China in the coming months, according to people familiar with the matter. This follows a deal in May that guarantees Brazil access to the world’s top grains market over the long term.
STUNG BY CHINA’S TARIFFS, AUSTRALIAN GROWERS EMBRACE NEW MARKETS
Sources: Aljazeera – August 5th
Exporters of barley and wine are seeking to diversify after more than two years of Chinese trade restrictions.
Brett Hosking, a grain farmer in Victoria, Australia, has taken a significant cut in profits since China slapped an 80.5 percent tariff on Australian malt barley in 2020.
Now, barley growers estimate that they are losing $50 Australian dollars ($35) per tonne, he said, because they are having to sell their quality malt barley to other markets as livestock feed.
CHINA STOCKPILED OIL IN JULY DESPITE WEAK IMPORTS, REFINERY RUNS
Source: Energy Bulletin – August 17th
China’s refinery processing and crude imports were unambiguously weak in July, but the world’s largest oil importer still added to stockpiles, maintaining a trend of building inventories. China added about 290,000 barrels per day (bpd) to either commercial or strategic crude inventories in July, according to calculations based on official data.
OIL SLIDES AS CHINA LOCKDOWNS STOKE DEMAND FEARS
Source: Hellenic Shipping News – Sep 1st
Oil prices tumbled on Thursday, as new COVID-19 lockdown measures in China added to worries that high inflation and interest rate hikes are denting fuel demand.
Brent crude futures fell $2.10, or 2.2%, to $93.54 a barrel by 1013 GMT. U.S. West Texas Intermediate (WTI) crude futures slid $1.86, or 2.1%, to $87.69 a barrel.
CRUDE TANKERS: RUSSIAN INVASION SETS THE TONE BUT CHINA’S BEHAVIOUR HAS THE LAST SAY
Source: Vortexa – August 25th
Russian-Ukranian conflict managed to shift the crude tanker trade patterns, however Chinese purchasing activity is and will remain a barometer for tanker recovery.
Six months have passed since the invasion of Russia in Ukraine, which caught most of the world and in consequence – shipping markets – by surprise. At the onset of the invasion, diverging opinions came into the spotlight regarding the overall impact that the conflict would have on the crude tanker markets. FULL STORY
CHINA’S SINOPEC STARTS FIRST CARBON CAPTURE, STORAGE FACILITY, PLANS ANOTHER TWO BY 2025
Source: Hellenic Shipping News – August 29th
China’s Sinopec Corp said on Monday it has put into operation the country’s largest carbon capture, utilisation and storage (CCUS) facility in east China, and plans to build two more plants of similar size by 2025.
The state oil giant is one of the leading companies building pilot CCUS projects in China, part of the country’s goal to reach peak carbon emissions by 2030.
CHINA’S JULY MARINE FUEL EXPORTS UP 13.22% FROM JUNE
Source: Energy Bulletin – August 21st
China’s exports of very-low-sulfur marine fuel rebounded 13.22% in July versus June as the country’s merchandise exports recovered, but still stood nearly 9.69% below the year-ago level, customs data showed on Saturday. Exports of very-low-sulfur fuel oil (VLSFO), measured mostly by sales from China’s bonded storage for vessels plying international routes, were 1.60 million tonnes, data from the General Administration of Customs showed…FULL STORY
CHINA TO LIFT AUG FUEL EXPORTS BUT 2022 SHIPMENTS TO DROP TO 7-YEAR LOWS
Bulletin – August 15th
Diesel, gasoline, jet fuel shipments to drop 30%-40% from 2021 August exports of diesel to top 1 mln T for first time in a year Full-year fuel export volumes to be lowest since 2015 Fuel export quotas at 22.5 mln T so far and may not be more -JLC SINGAPORE, Aug 15 (Reuters) – China’s fuel product exports will rebound in August to near the highest for the year so far after Beijing issued more quotas in June and July, although broader curbs are set to cap shipments at seven-year lows for 2022, analysts and traders said. ….FULL STORY
CHINA DATA: INDEPENDENT REFINERIES BOOST DISCOUNTED CRUDES IMPORTS 33% ON MONTH IN JULY
Source: Energy Bulletin – August 11th
China’s independent refineries boosted imports of discounted crudes from Venezuela, Iran, and Russia by 32.8% month on month to 8.3 million mt, or 1.96 million b/d, in July via the Shandong and Tianjin ports, S&P Global Commodity Insights data showed Aug. 10.
CHINA’S OIL, GAS OUTPUT HITS RECORD HIGH IN FIRST 7 MONTHS
Source: Source: China Daily – August 19th
China’s oil and natural gas output hit a record high in the first seven months of 2022, helping to buoy economic development and meet people’s living needs, the National Energy Administration said Thursday….FULL STORY
ZHOUSHAN PORT RANKS 5TH IN BUNKERING
Source: China Daily – Sep 1st
Last year, it processed 26.52 million metric tons of crude oil, and Zhejiang Petroleum and Chemical Co, the operator and investor, generated 139 billion yuan ($20.1 billion) in revenue.
Reforms promoted in the Zhoushan area also attracted fuel oil suppliers and traders. FULL STORY
CHINA’S CONTAINER THROUGHPUT RISES 11.2% IN JULY
Source: China Daily – August 26th
China’s container throughput rose 11.2 percent year-on-year to 26.36 million twenty-foot equivalent units in July, data from the Ministry of Transport showed Thursday.
The growth rate was 4.7 percentage points higher than that in June. FULL STORY