China-Iran Trade Report (March 2021)
___STEADY_PAYWALL___China’s Deficit with Iran Widens
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for March shows China running a small trade deficit with Iran, as Chinese exports to Iran fell to USD 475 million from USD 584 million. Chinese imports from Iran rose from USD 393 million in February to USD 523 million. The increase in Chinese imports was not attributable to purchases of Iranian crude oil, which were effectively zero for the third straight month. The increase Iran was driven by a USD 88 million rise in polyethylene imports between February and March.
Meanwhile, indirect purchases of Iranian crude, not reflected in the customs data for Iran, reached new highs. China’s declared oil imports from Malaysia totalled USD 2.3 billion, an all-time high, reflecting increased demand for Iranian oil which is delivered to China via Malaysia. Taken with the increase in non-oil imports, the Iran appears to be running a sizeable trade surplus with China, a fact that bodes well following the balance of payments crisis induced by the pandemic. That Chinese exports to Iran remain below historical levels may reflect that demand is still depressed in Iran. But the economic recovery now underway, the strengthening of the rial, and the resurgence in consumer demand seen in the final months of the Iranian calendar year, may lead to an increase in Chinese exports in the next quarter.
