OP: Why China's strong commodity imports defy weak economic data

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OILPRICE.COM reports:

Despite continued weak economic performance, China’s imports of major commodities in the first two months of 2024 held strong and exceeded last year’s levels.

Imports of crude oil, LNG, coal, and iron ore were all higher at the start of the year compared to the same period of 2023, although China’s economic data still shows a weak recovery, problems in several key sectors, and low consumer confidence.

There’s a reason behind the robust commodity imports, and it’s not Chinese economic growth. Rather, it is the market dynamics for each major commodity, Reuters columnist Clyde Russell notes.

Strong Commodity Imports

Crude oil imports into China, the world’s top crude importer, increased to 11.73 million barrels per day (bpd) in February, higher than the 11.31 million bpd imports in January, per LSEG data cited by Russell.

China’s customs office doesn’t report separate data for January and February to avoid distortion due to the Lunar New Year holiday, which typically begins at the end of January or early February.

According to LSEG estimates…

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