Bulk Shipping Watch Newsletter – July 2024

July 2024

Iron Ore & Steel

China’s steel industry speeds up optimization of steel variety structure

Source: China Daily

China’s steel industry has been accelerating the optimization of steel variety structure in pace with the adjustment and optimization of national industrial structures, the China Iron and Steel Industry Association (CISA) said Wednesday. FULL STORY

China’s rate cuts fail to revive iron ore and copper: Russell

Source: Zawya

Benchmark iron ore futures on the Singapore Exchange dipped 0.4% to end at $106.79 a metric ton, while China’s main domestic contract on the Dalian Commodity Exchange ended daytime trade 0.3% lower at $109.79 a ton FULL STORY

Dry Bulk Shipping: land based competition could hurt seaborne iron ore demand

Source: Hellenic Shipping News

Demand for seaborne iron ore imports from China, could be heading for a slowdown in the coming weeks and months. FULL STORY

China’s commodity import trend driven by prices, not economy: Russell

Source: Zawya

Iron ore contracts reached $143.08 a ton on Jan. 3 – its highest level so far this year – before sliding to the low of $98.36 on April 4. FULL STORY

Iron ore retreats further as key China economic meeting, strong global supply weigh

Source: Shipping Herald

Iron ore futures retreated further on Tuesday as the outcome of China’s key Politburo meeting and the strong global supply outlook both weighed. The most-traded September iron ore contract on China’s Dalian Commodity Exchange (DCE) ended daytime trade 2.77% lower at 756 yuan ($104.14) a metric ton. The benchmark August iron ore on the Singapore Exchange fell 3.08% to $98.75 a ton, its lowest since April 8, as of 0700 GMT. FULL STORY

China demand concerns, risk-off sentiment drag copper and aluminium down

Source: Shipping Herald

Copper prices in London extended their fall to the third consecutive session on Tuesday as concerns about demand in top consumer China and uncertainty about timing of interest-rate cuts worsened speculative sentiment towards industrial metals. FULL STORY

China’s June crude steel output eases as demand and margins shrink

Source: Market Screener

China’s crude steel output in June fell 1.3% from May, statistics bureau data showed on Monday, curbed by dwindling demand and shrinking steel margins. FULL STORY

Iron ore rises to more than 1-week high on upbeat demand outlook, China stimulus hopes

Source: Shipping Herald

Iron ore futures prices rose to a more than one-week high on Thursday, buoyed by top producer Rio Tinto’s optimistic demand outlook for top consumer China and continued hopes of more stimulus from the world’s second-largest economy. FULL STORY

Rio Tinto Reaches 4 Billion Tonnes of Iron Ore Shipped to China

Source: Nasdaq

Fifty-one years after dispatching its first shipment, Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) has sent a cumulative total of 4 billion tonnes of iron ore from the Pilbara region in Western Australia to China. FULL STORY

China June iron ore imports at 97.61 mln tons, customs data shows

Source: Market Screener

China’s imports of iron ore in June rose 2.2% from a year earlier, customs data showed on Friday. FULL STORY

Coal

Wind, solar power surpasses coal power

Source: China Daily

China’s combined installed capacity of wind and solar power has surpassed that of its coal power for the first time at the end of June, data from the China Electricity Council showed on Wednesday.  FULL STORY

China’s run of robust thermal coal imports may ease: Russell

Source: Webull

 One of the standout commodity stories so far this year has been China’s demand for thermal coal, with the world’s largest importer seeing record shipments arriving in the first half. FULL STORY

China’s June coal output hits six-month high as safety inspections ease

Source: Brecorder

China’s coal output rose to a six-month high in June, statistics bureau data showed on Monday, notching the first year-on-year increase of 2024 as safety inspections that constrained production earlier in the year eased. FULL STORY

China’s June coal imports rise as heat boosts electricity demand

Source: Mining Weekly

China’s coal imports in June rose 12% year-on-year, customs data showed on Friday, as heatwaves in the world’s top consumer of the fuel supported demand. FULL STORY

Pakistan to push Chinese utilities in Pakistan to switch to domestic coal

Source: Zawya

ISLAMABAD: Pakistan this month will ask Chinese power plants operating in the country to shift to using coal from Pakistan’s Thar region rather than imported coal, the power minister said on Sunday. FULL STORY

China starts consultations for 2 new CCER methodologies on coal mine gas, streetlights

Source: Spglobal

China initiated consultations for two new carbon crediting methodologies under its domestic voluntary carbon market called China Certified Emission Reductions, or CCER, to issue credits to projects that utilize coal mine gas and adopt energy-efficient streetlights in highway tunnels, the Ministry of Ecology and Environment said in a statement late July 30. FULL STORY

Soybean

China’s soybean imports rise 10.7% in June, with buyers focusing on the Brazilian harvest

Source: Tridge

China’s soybean imports in June increased by 10.7% compared to the previous year, reaching 11.11 million tonnes, as buyers stockpiled cheaper Brazilian beans. Despite challenges in Brazil’s export season due to excessive rain and flooding, China’s overall soybean imports for the first half of the year decreased by 2.2% compared to the previous year. There is anticipation for record volumes of soybean imports in July, driven by lower prices and potential trade tensions if Donald Trump is elected US president in November. The United States Department of Agriculture predicts soybean imports in the 2024/25 campaign to remain unchanged at 103 million tons.  FULL STORY

China increased imports of Russian wheat, but reduced purchases of soybeans and rapeseed

Source: Ukr Agro Consult

China significantly increased wheat imports from Russia in the first half of 2024, while corn purchases fell sharply, Interfax reports.

China purchased Russian wheat for $38.9 mln against $4.6 mln a year earlier. At the same time, imports of Russian corn decreased to $19.9 million from $54.3 million.  FULL STORY

China’s soybean meal stocks hit record high of 1.38 million tons

Source: Ukr Agro Consult

China’s soybean meal stocks reached a record high of 1.38 million tons as of July 26, up 29% from the previous month and 86.5% from the same period last year, according to the China National Grain and Oil Information Center. FULL STORY

China: Exports of agricultural, forestry and aquatic products increased by nearly 19% in the first seven months of 2024

Source: Tridge

Vietnam’s exports of agricultural, forestry, and aquatic products have experienced substantial growth, with agricultural exports reaching $18.21 billion (up 23.4% year-on-year), forest products at $9.41 billion (up 21.1%), and aquatic products at $5.29 billion (up 4.8%). Significant increases were noted in wood and wood products ($8.78 billion, up 21.9%), coffee ($3.54 billion, up 30.9%), and rice ($3.27 billion, up 25.1%). The average export prices for many products also rose, such as rice ($632 per ton, up 18.2%) and coffee ($3,669 per ton, up 51.7%). The United States, China, and Japan remain the top export markets, while efforts are being made to expand into new markets like the Middle East and Africa. FULL STORY

China plans to increase grain imports from Ukraine

Source: Ukr Agro Consult

Chinese Foreign Minister Wang Yi said at a meeting with Foreign Minister Dmytro Kuleba in Guangzhou that China intends to increase grain imports from Ukraine and jointly support international food security, the Chinese Foreign Ministry reports. FULL STORY

Surplus of soybeans in China, caused by active imports from Brazil, lowers domestic prices for meal and oil

Source: Ukr Agro Consult

China, which is the world’s largest importer of soybeans, continues to increase its purchases, which has already led to a surplus in the domestic market and a drop in prices for soybean meal and oil. Therefore, in the coming months, soybean imports may decline significantly, which will negatively affect exports from the United States. FULL STORY

China faces soybean glut as peak U.S. export season nears

Source: Ukr Agro Consult

China is facing an oversupply of soybeans as record high purchases boost stockpiles at a time when animal feed demand remains subdued, with prices of products such as soyoil and soymeal set to sink even lower. FULL STORY

Malaysia commits to supplying China with sustainability-certified palm oil

Source: Biofuels News

Datuk Chan Foong Hin, Deputy Minister of Plantation and Commodities, said that Malaysia seeks to cooperate with China in establishing a shared consensus during engagements with the European Union, particularly regarding the European Union Deforestation Regulation (EUDR). FULL STORY

China cut corn imports to a multi-month low in June

Source: Ukr Agro Consult

China imported 0.920 million tons of corn in June, the lowest monthly imports since December 2022, according to the China Customs Administration. FULL STORY

China Buys First US Soy for 2024 Crop — About Seven Months Late

Source: AJOT

China, the world’s largest importer of soybeans, made its first purchase of US soybeans for the upcoming season — months later than usual. 

The US Department of Agriculture announced on Wednesday that China purchased 132,000 metric tons of soybeans for the 2024-25 season. That marked the first transaction of its kind for the marketing year. FULL STORY

China Buys First US Soy for 2024 Crop — About Seven Months Late

Source: AJOT

China, the world’s largest importer of soybeans, made its first purchase of US soybeans for the upcoming season — months later than usual. 

The US Department of Agriculture announced on Wednesday that China purchased 132,000 metric tons of soybeans for the 2024-25 season. That marked the first transaction of its kind for the marketing year. FULL STORY

Energy

China’s H1 crude imports from top supplier Russia up 5% on year

Source: Shipping Herald

China’s crude oil imports from top supplier Russia fell 20% in June year-on-year, bringing the total for the first half of 2024 up 5%, official data showed on Saturday, as refiners, pressured by weakened margins, chased discounted barrels. FULL STORY

China’s Iranian crude imports find new market in northeast

Source: Shipping Herald

Imports of Iranian crude have been flowing into the port and refining city of Dalian since late last year, tanker tracking firms and trading sources said, helping sustain the country’s purchases of the oil at near record levels. FULL STORY

China, UAE oil company sign strategic cooperation agreement

Source: China Daily

China National Offshore Oil Corporation, the country’s top offshore oil and gas driller, said on Thursday that it has signed a strategic cooperation agreement with United Arab Emirates-based Abu Dhabi National Oil Company, or ADNOC, to further deepen bilateral cooperation. FULL STORY

China to consume up to 7.7% more natural gas in 2024: report

Source: China Daily

China’s natural-gas consumption is expected to rise by 6.5 to 7.7 percent year-on-year in 2024, a report issued by National Energy Administration showed Tuesday. FULL STORY

Peru port moves ahead with Chinese support

Source: China Daily

The Chancay Port project in Peru, being built by China’s COSCO Shipping, could facilitate trade with the entire Latin American region and cut the time it takes to ship products by almost two weeks. FULL STORY

China’s weak diesel consumption squeezes outlook for oil demand

Source: Market News

China’s slumping consumption of diesel, as use of LNG-powered trucks grows, is weighing on domestic fuel demand, with forecasters warning of further risks from a sluggish economy hobbled by a prolonged crisis in the property sector. FULL STORY

CHINA DATA: August crude throughput to recover amid less refinery maintenance

Source: Spglobal

China’s overall crude throughput is set to recover in July and August after reaching a six-month low in June as scheduled refinery maintenance winds down, but throughput levels will remain lower on the year amid weak domestic demand, sources and analysts told S&P Global Commodity Insights on July 30. FULL STORY

Sino-Saudi ties prospering in energy sector

Source: China Daily

China and Saudi Arabia have embarked on several landmark projects to jointly bolster renewable energy efforts, which will pave the way for significant advancements in renewable energy infrastructure and technology that will benefit both nations, according to analysts. FULL STORY

China to drive methanol capacity additions in APAC through 2030, says Global Data

Source: Global Data

China is set to drive the methanol capacity additions in Asia-Pacific (APAC), occupying a share of 67% by 2030, as both demand and supply of methanol are expected to grow in the country, according to Global Data, a leading data and analytics company. FULL STORY

Oil falls 1.5%, ends week lower on China demand fears

Source: Hellenic Shipping News

Oil futures fell about 1.5% on Friday, finishing the week lower on declining Chinese demand and hopes of a Gaza ceasefire agreement that could ease Middle East tensions and accompanying supply concerns. FULL STORY

China’s natural gas output rises in H1

Source: Xin Hua

China’s production of natural gas has maintained steady expansion in the first half of 2024, data from the National Bureau of Statistics (NBS) showed Monday. FULL STORY

China to consume up to 7.7 pct more natural gas in 2024: report

Source: Xin Hua

China’s natural-gas consumption is expected to rise by 6.5 to 7.7 percent year on year in 2024, a report issued by National Energy Administration showed Tuesday. FULL STORY