China's July crude oil and soybean imports fall, iron ore rises

China's imports of crude oil and soybeans declined in July compared with the same month last year, while iron ore purchases increased, according to customs data released on Friday. The figures come as exports continued to outperform expectations, providing a key support for the world's second-largest economy.

July crude oil imports stood at 35.73 million metric tons, down 24.3% from a year earlier. Soybean imports totaled 11.48 million tons, a 1.6% drop. Unwrought copper imports fell 11.5% to 425,000 tons, while rare earth exports declined 29.5% to 4,224 tons.

Iron ore imports, however, rose 3.3% year-on-year to 108.09 million tons. Coal imports reached 43.73 million tons, and steel exports were 10.12 million tons.

Analysts offered context for the trends. On soybeans, Rosa Wang of Shanghai JC Intelligence noted that with large volumes of imported beans arriving, crushing plants are expected to ramp up operations, leading to a stock-building cycle for soybean meal.

For iron ore, Cody Wang of Steelhome in Maanshan pointed to lower global shipments after a June surge tied to quarterly targets, as well as cautious procurement by domestic steelmakers amid shrinking margins.

Bai Xin of Horizon Insights in Shanghai said overseas steel buying slowed after a second-quarter restocking wave, but export margins remained attractive, keeping shipments elevated.

On crude oil, Ye Lin of Rystad Energy in Singapore explained that improved imports reflected barrels bought opportunistically when Brent traded in the $70s per barrel range in June, during a brief window when the Strait of Hormuz reopened. Arrivals from that window are expected to continue through August, supporting a modest improvement in refinery run rates as margins recover.