China-Iran Trade Report (October 2022)
Soft Demand in Iran
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for October 2022 shows a significant contraction in China-Iran trade, which fell to a monthly total of $1.04 billion, the lowest level since February 2022.
In October, Chinese imports from Iran fell to a 24-month-low of $365 million, continuing the negative trend that began in September. While Chinese imports of ores, slag, and ash (HS Chapter 26) tripled compared to the previous month, rising to $82 million, October’s lower import total reflected significant reductions in the value of imported plastic articles (HS Chapter 39) and copper (HS Chapter 74).
For the fourth consecutive month, the value of Chinese declared imports of Iranian oil remained close to zero. After the sharp decline observed in September, Chinese oil imports from the UAE settled at $3.78 billion in October. At the same time, the value of crude China imported from Malaysia dropped by one-fifth compared to September, settling at just under $3 billion. China has traditionally used the UAE and Malaysia as intermediary countries to import undeclared Iranian oil, with the Southeast Asian country reported to be also used by Beijing as a transfer point for Russian crude. After September’s significant contraction, October’s recovery in oil imports from the UAE may reflect the resilience of Iran’s crude in the supply basket of Chinese teapot refineries. Iranian exporters will be hoping that the forthcoming change in China’s zero-COVID policy might lead to a recovery in China’s economy, and thereby greater demand for Iranian goods.
Chinese exports to Iran consolidated the negative trend observed in September data, settling at $673 million. This marks a 30% decline compared to levels seen in July and August of this year. The value of exported articles of iron and steel (HS Chapter 73) dropped to $26 million, 47% less than the previous month. The value of machinery and electrical appliances (HS Section XVI) exported from China to Iran also fell, settling at $228 million. However, the export of Chinese-made cars and other vehicles (HS Chapter 87) to Iran registered a small rebound, rising 13% from September’s 6-month low. Lower levels of Chinese exports to Iran may reflect softening demand in Iran, as national protests hit economic sentiment in October.
In October, Chinese imports from Iran fell to a 24-month-low of $365 million, continuing the negative trend that began in September. While Chinese imports of ores, slag, and ash (HS Chapter 26) tripled compared to the previous month, rising to $82 million, October’s lower import total reflected significant reductions in the value of imported plastic articles (HS Chapter 39) and copper (HS Chapter 74).
For the fourth consecutive month, the value of Chinese declared imports of Iranian oil remained close to zero. After the sharp decline observed in September, Chinese oil imports from the UAE settled at $3.78 billion in October. At the same time, the value of crude China imported from Malaysia dropped by one-fifth compared to September, settling at just under $3 billion. China has traditionally used the UAE and Malaysia as intermediary countries to import undeclared Iranian oil, with the Southeast Asian country reported to be also used by Beijing as a transfer point for Russian crude. After September’s significant contraction, October’s recovery in oil imports from the UAE may reflect the resilience of Iran’s crude in the supply basket of Chinese teapot refineries. Iranian exporters will be hoping that the forthcoming change in China’s zero-COVID policy might lead to a recovery in China’s economy, and thereby greater demand for Iranian goods.
Chinese exports to Iran consolidated the negative trend observed in September data, settling at $673 million. This marks a 30% decline compared to levels seen in July and August of this year. The value of exported articles of iron and steel (HS Chapter 73) dropped to $26 million, 47% less than the previous month. The value of machinery and electrical appliances (HS Section XVI) exported from China to Iran also fell, settling at $228 million. However, the export of Chinese-made cars and other vehicles (HS Chapter 87) to Iran registered a small rebound, rising 13% from September’s 6-month low. Lower levels of Chinese exports to Iran may reflect softening demand in Iran, as national protests hit economic sentiment in October.
