China-Iran Trade Report (June and July 2022)
Chinese Exports to Iran Surge
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for June and July 2022 show Chinese imports dropping significantly in July after consistent growth in the previous three months. Declared oil and non-oil imports from Iran suffered a sensible decline, with the declared value of Iranian crude that reached China in July at the lowest since April 2022. ___STEADY_PAYWALL___
In June, Chinese imports from Iran reached $888 million, the highest monthly value recorded in the past two years. This total includes $222 million of declared oil imports—again one of the highest levels recorded in the last 24 months.
Chinese imports from Iran in July dropped significantly to $390 million, with plastic and rubber (HS Chapter 7) and copper (HS Section 74) imports declining substantially month-on-month. Although there was also a significant decline in declared oil imports from Iran, which fell to $6.5 million, Chinese crude imports from the UAE and Malaysian remained at or near all time highs. The significant level of oil imports from the UAE and Malaysia suggests that despite the fall in declared imports, a significant volume of Iranian oil is still reaching China. This may indicate resilience in Chinese demand for Iranian oil vis-à-vis the growing volume of cheap, non-sanctioned Russian oil that has been marketed to Chinese teapot refineries since the beginning of the Russia-Ukraine War.
Chinese exports to Iran grew steadily in June and July, surpassing the $1 billion level. In July, the value of chemical products (HS Section 6) that Iran imported from China totalled $81 million, and base metals (HS Chapter 81) surpassed $100 million. Notably, Iranian imports of Chinese machinery (HS Chapter 84) totalled $243 million, marking a new high point in the year. Due to the highest value of exports and the drop in imports, the China-Iran trade balance moved significantly in China’s favour.
