China's rare earth exports in July fell by 23% month-on-month, soybean imports hit a record high, and iron ore imports remained above 100 million tons for three consecutive months

China's rare earth exports in July fell by 23% month-on-month, ending the momentum of record highs set in June. Soybean imports in July reached a historical peak, coal imports rebounded from a two-year low touched in June, and crude oil imports remained high for the second consecutive month.

On Thursday, August 7, the General Administration of Customs released data showing that in June, China's imports increased by 4.8% year-on-year in RMB terms, marking two consecutive months of growth. Exports in June grew by 8% year-on-year.

In terms of commodity exports, China's rare earth export volume in July declined by 23% compared to the previous month, ending the momentum of record highs set in June. Steel exports reached a new high in July, but imports of iron ore, the main raw material for steel production, decreased due to rising prices.

In terms of commodity imports, China's soybean imports in July reached a historical high for the month, coal imports rebounded from a two-year low touched in June, and crude oil imports remained high for the second consecutive month.

Rare Earth Exports Fell Over 20% Month-on-Month, Steel Exports Continued to Rise

The General Administration of Customs announced on Thursday that the world's largest rare earth producer exported 5,994.3 tons of rare earth products in July, a 23% decrease compared to June. More comprehensive data will be released on August 20, which will include detailed information on rare earth magnet exports.

However, despite the month-on-month decline in July, China's total rare earth exports in the first seven months of this year still maintained a growth trend, with cumulative exports of 38,563.6 tons, an increase of 13% compared to the same period in 2024.

China's steel exports continued to rise in July, extending the record performance seen this year.

The General Administration of Customs reported that the steel export volume in July increased by 1.7% month-on-month to 9.84 million tons, with cumulative exports of 67.98 million tons in the first seven months of this year, setting a record high since 1990.

Imports of iron ore, a major raw material for steel production, saw a correction, with imports in July decreasing by 1.3% month-on-month to 10.46 million tons, mainly due to rising prices. Iron ore prices rose nearly 7% in July. China Futures analyst Chu Xinli stated:

"Despite the monthly decline, iron ore imports remained high in July due to improved steel profitability driving relatively high pig iron production."

July marked the third month this year in which iron ore imports exceeded 100 million tons. Additionally, data showed that in the first seven months of this year, China's total iron ore imports amounted to 696.6 million tons, a year-on-year decrease of 2.3%.

Soybean Imports Reached Historical Highs for the Month, Coal Imports Rebounded Month-on-Month, Crude Oil Imports Remained High

Soybeans: According to data from the General Administration of Customs, China imported 11.67 million tons of soybeans in July, an increase of 18.5% year-on-year, exceeding analysts' expectations of 10.48 million tons. This figure set a historical high for soybean imports in July, mainly due to strong export supplies from Brazil and trade uncertainties.

Most of the soybeans are expected to come from the largest supplier, Brazil. Analysts pointed out that Brazil's abundant soybean production provides a strong foundation for supply. With a bumper harvest of Brazilian soybeans, the peak supply period is expected to last longer than in previous years, remaining at high levels before the fourth quarter Customs data shows that in the first seven months of this year, China's total soybean imports reached 61.04 million tons, an increase of 4.6% year-on-year.

Coal: China's coal imports in July amounted to 35.61 million tons, a year-on-year decrease of 23%. Despite the significant year-on-year decline, the July import volume has rebounded from a two-year low in June.

Analysis indicates that high temperatures have driven an increase in air conditioning usage, which in turn has boosted electricity consumption demand, providing support for coal imports.

Customs data shows that in the first seven months of this year, China's total coal imports reached 257.3 million tons, a year-on-year decrease of 13%.

Crude Oil: According to data from the General Administration of Customs, July imports were 47.2 million tons of crude oil, averaging 11.12 million barrels per day, maintaining a high level for the second consecutive month.

Although the import volume has significantly increased year-on-year, it decreased by 5.4% compared to June's 49.89 million tons. Analysts state that after June's import volume reached a nearly two-year high, the July adjustment was mainly due to independent refineries having stockpiled large amounts earlier, leading to a slowdown in procurement demand that month.

Data also shows that from January to July, cumulative crude oil imports reached 327 million tons, an increase of 2.8% year-on-year, averaging 11.25 million barrels per day, reflecting a continued recovery in China's oil demand.

In the first seven months, imports of integrated circuits, copper ore and its concentrates, and soybeans increased, while imports of refined oil, coal, and steel decreased.

In terms of quantity, July refined oil imports reached 4.03 million tons, an increase of 24% year-on-year, while soybean and copper ore and its concentrates imports were 11.67 million tons and 2.56 million tons, respectively, increasing by 18.2% and 18.4% year-on-year. Integrated circuit imports increased by 12.3% year-on-year, reaching 55.33 billion units.

Imports of coal, steel, and natural gas decreased year-on-year by 22.9%, 10.5%, and 2.1%, respectively.

Looking at the first seven months of this year, the year-on-year growth rates for imports of integrated circuits, copper ore and its concentrates, and soybeans were 9.5%, 8%, and 4.6%, respectively. The year-on-year declines for refined oil, steel, and coal imports were 16.6%, 15.7%, and 13%.

In terms of value, July year-on-year increases for copper ore and its concentrates, integrated circuits, and unwrought copper and copper materials were 27.6%, 13.9%, and 10.4%, respectively. Year-on-year declines for coal, iron ore and its concentrates, and steel were 47.4%, 11.29%, and 8%.

In the first seven months of this year, year-on-year increases for copper ore and its concentrates, integrated circuits, and copper materials were 18.5%, 9.2%, and 2.2%, respectively. Year-on-year declines for coal, refined oil, and iron ore and its concentrates were 33.9%, 19.9%, and 17%.