China’s import-export data: China’s total exports rose 16.4% YoY (year-over-year) in March 2017, which was far better than the 3.2% rise estimated by a Reuters analysts.
China’s imports rose by 20.3% YoY, lower than last month’s surge of 38% YoY. However, March imports were still higher than the Reuters forecast of 18%.
China’s crude oil imports in February: China’s crude oil imports hit an all-time high in March. Total crude oil imports came in at 39 million tons, compared with 31.8 million tons in February.
In March, ~9.2 million barrels per day were imported, a 19.4% rise YoY and a 10.7% rise month-over-month. Crude imports exceeded the earlier record of 8.6 million bpd (barrels per day), seen in December 2016.
They exceeded analyst expectations, and China has replaced the United States as the biggest importer of crude oil in the world. Imports rose due to independent oil refiners increasing their purchasing when they received fresh 2017 quotas in mid-January.
Why China’s imports are crucial
China (FXI) (MCHI) imports most of its oil by sea. Typically, higher crude oil imports mean higher crude oil tanker demand, and higher tanker demand translates to higher tanker rates.
Higher tanker rates benefit crude oil tanker companies such as Frontline (FRO), Teekay Tankers (TNK), Tsakos Energy Navigation (TNP), Nordic American Tankers (NAT), DHT Holdings (DHT), Gener8 Maritime (GNRT), Navios Maritime Midstream Partners (NAP), and Euronav (EURN). In the next part of this series, we’ll take a look at China’s broader economic health.
Source: Marketrealist.com
