China’s Oil and Gas Imports Shrink on Gulf Turmoil
(Bloomberg) -- Chinese crude oil and natural gas imports fell in March, as the supply crunch in the Gulf began to affect shipments.
Crude purchases dropped 2.8% from the previous year to 49.982 million tons, although the figure was higher than February, according to China’s customs administration on Tuesday. Imports over the year so far rose 8.9% as China continued to stockpile oil despite weakness in the economy.
Gas imports fell more sharply, down 11% to 8.183 million tons, leaving the year-to-date figure 4% below the pace set in 2025.
Major refiners saw fewer cargoes from Gulf producers like Saudi Arabia and Iraq, after the US and Israeli attack against Iran that began on Feb. 28 effectively closed the Strait of Hormuz to traffic. At the same time, the smaller independent plants that had been prepared to ignore sanctions have has their access curtailed to the heavily discounted Iranian crude they’ve relied on to protect razor-thin margins.
Chinese oil product exports fell 12% to 4.601 million tons, after the government imposed curbs to conserve domestic fuel supplies. Beijing has allowed state refiners to tap commercial reserves to help weather an unprecedented supply shock that’s only likely to worsen as the US Navy disputes Iran’s control of the key waterway.
Gas purchases slumped even though nearly half of Chinese supply arrives overland from Russia, Central Asia and Myanmar. China won’t break out its seaborne imports until later this week, but ship-tracking data shows liquefied natural gas cargoes plunged 22% in March from the previous year to 3.74 million tons.
The seaborne market is facing prolonged disruptions. China took roughly a quarter of its LNG from Qatar, which will take years to restore operations after Iranian strikes against the world’s biggest export facility. But with pipelines running at capacity, there’s not much leeway in the short term for China’s overland suppliers to pick up the slack.
Other Commodities
Other commodities saw bigger-than-usual swings in trade due to the impact of the war on shipping costs, supply and demand.
- Aluminum exports fell 5%, although overseas sales are expected to pick up as buyers turn to China to offset production losses from the Middle East
- Steel exports fell 13% — Saudi Arabia was China’s fastest-growing major overseas market last year
- Iron ore purchases rose 11% after fewer weather-related shipping disruptions in top exporter Australia, while copper metal imports fell 11% and copper ore rose 10%
- Rare earth exports fell 27% as domestic supply tightened
- Coal imports inched up, despite gains in international prices and an output cap in top supplier Indonesia
- Soybean imports rose 15% as Brazilian shipments competed with more US cargoes after the trade truce with Washington
On the Wire
A hoard of Iranian crude on tankers at sea and robust onshore stockpiles in China will provide a cushion for the nation’s independent refiners should a US blockade of the Strait of Hormuz choke off flows.
China’s state-backed iron ore buyer has told several steel mills in the country they are allowed to purchase some BHP Group cargoes, an apparent concession in a months-long commercial dispute.
A US-sanctioned tanker linked to China is making its way through the Strait of Hormuz, testing President Donald Trump’s naval blockade.
China’s export growth slowed sharply in March from previous months, reflecting intensifying strains on the world’s No. 2 economy as the war in Iran upends global energy supply.
Contemporary Amperex Technology Co. Ltd. is considering a share sale to raise as much as $5 billion in Hong Kong after rallying strongly since its May listing in the city.
The war in Iran is spurring a fresh wave of enthusiasm over prospects for China’s currency to more effectively rival the US dollar.
This Week’s Diary
(All times Beijing)
Tuesday, April 14
- China’s March trade balance and 1st batch of trade data, ~11:00
- Crude oil, natural gas & coal imports; oil products imports & exports
- Iron ore, copper & steel imports; steel, aluminum & rare earth exports
- Soybean, edible oil, rubber and meat imports; fertilizer exports
- EARNINGS: Hengli Petrochemical
Wednesday, April 15
- CCTD’s weekly online briefing on coal markets, 15:00
- Canton fair in Guangzhou (phase 1 through April 19)
- EARNINGS: CATL
Thursday, April 16
- China’s home prices for March, 09:30
- China’s industrial output for March, including steel & aluminum; coal, gas & power generation; and crude oil & refining, 10:00
- Retail sales, fixed assets investment, property investment, residential sales, jobless rate
- 1Q GDP
- 1Q pork output and inventory
- Retail sales, fixed assets investment, property investment, residential sales, jobless rate
- Antaike base metals conference in Hangzhou
- SHPGX natural gas conference in Beijing, day 1
Friday, April 17
- China’s weekly iron ore port stockpiles
- SHFE’s weekly commodities inventory, ~15:30
- SHPGX’s natural gas conference in Beijing, day 2
Saturday, April 18
- China’s 2nd batch of March trade data
- Grains, sugar, cotton, palm oil, pork & beef imports
- Oil products imports & exports breakdown; LNG & pipeline gas imports
- Bauxite, steel and aluminum imports; rare-earth product, alumina and copper exports
(Updates with chart, other commodities from eighth paragraph, and published-item and diary sections)
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