China’s energy and metals imports experienced a significant decline at the start of 2025, following record imports of coal and gas in the previous year. This drop comes as the country faces an overhang of supply and a continued easing of oil demand.
Crude oil imports fell by 5% year-on-year in January and February, totaling 83.85 million tons. This decline is partly due to China’s search for alternative sources after the United States imposed tighter sanctions on Russian and Iranian oil shipments. The drop in oil imports follows a broader trend seen in 2024, when China’s overall oil demand declined for the third time in the past decade, highlighting the ongoing impact of the country’s energy transition and economic shifts.
Imports of metals also saw sharp decreases in early 2025. The trade figures, which combine the first two months of the year, account for distortions from the Lunar New Year holiday’s irregular timing. Weaker industrial demand and a mild winter led to reduced consumption of power and heating fuels, further exacerbating the downward trend.
Natural gas imports fell by 7.7%, while coal imports rose by a modest 2.1%. However, these coal imports were much lower than the highs recorded in the latter half of 2024, as China continues to grapple with a significant oversupply of coal. This oversupply is expected to limit inbound coal shipments for the remainder of the year.
The slowdown in gas demand is also attributed to a weakening economy and the availability of cheaper alternatives. Liquefied natural gas (LNG) imports, which make up more than half of China’s gas supplies, fell to a five-year low in February, according to data from Kpler. Traders diverted cargoes to Europe, where higher prices were available, further impacting China’s LNG imports.
In the metals sector, copper imports dropped by 7.2%, reflecting weakened demand and China’s growing self-sufficiency in production. Iron ore imports fell by 8.4%, partly due to supply disruptions caused by cyclones in Australia. Last year’s record iron ore imports may have been an anomaly, as stockpiles remain high at Chinese ports, and the country’s plans to reduce steel output this year are expected to continue to depress demand.
Among China’s exports, aluminum saw a continued decline after the country ended its tax rebate on overseas sales. While steel exports rose, they remained well below the levels recorded in the second half of 2024, as trade measures to curb the global influx of Chinese metal began to take effect.
Overall, the early months of 2025 highlight a continued moderation in China’s demand for energy and metals, as the country navigates its energy transition and adjusts to shifts in its economic landscape.
Related topic:
U.S. Crude Exports to India Hit Two-Year High
