China’s Crude Oil Imports Showed Positive Growth in April
China Sees Increase in Crude Oil Imports
China’s Imports Surge in Preparation for Labour Day
China’s imports in April showed a positive growth trend compared to the previous year, with refiners gearing up for a fully recovered Labour Day holiday travel season. According to official data released on Thursday, crude imports in April reached 44.72 million metric tons, equivalent to about 10.88 million barrels per day (bpd). This represented a notable 5.45% increase from the 10.4 million bpd imported in April 2023.
Labour Day Holiday Boosts Passenger Trips in China
During the Labour Day holiday that started on May 1, China witnessed over 1.3 billion passenger trips, marking a 2.1% increase from the previous year. State media outlet Xinhua reported that highway traffic saw a 2.1% rise, while air trips surged by 8.1%. Furthermore, domestic airline seat capacity in April increased by 1.3% compared to last year, as reported by consultancy OAG.
Manufacturing Sector Continues Recovery
Despite the positive import figures, China’s manufacturing sector experienced a modest recovery in April. The official purchasing managers’ index dropped to 50.4 in April from 50.8 in March, signaling a slower expansion in activity. Imports decelerated by 5.8% from March’s level of 11.55 million bpd.
Forecasts and Market Trends
Chinese consultancy JLC predicted a 4.6% decline in sea-borne oil shipments from March to April due to tight profit margins and maintenance season. However, data cited by China commodities consultancy MySteel indicated a 24% lower capacity shutdown for maintenance at state-owned refineries compared to the previous year.
Final Thoughts on China’s Oil Imports
In April, imports for China saw a 14.7% increase compared to the previous year, reaching 10.30 million tons. Meanwhile, LNG prices for Asia were down 11.3% from the same period last year. Customs data also revealed a 21.46% increase in exports of refined oil products compared to a year earlier.
