China-Iran Trade Report (September 2022)
Iranian Oil Getting Squeezed
New data released by the General Administration of Customs of the People’s Republic of China (GACC) for September 2022 shows a significant drop in Chinese exports to Iran. While the decline in exports helped to level the trade balance, September data show a contraction in the China-Iran trade sharpened by the apparent decline in Chinese imports of Iranian oil via third countries.___STEADY_PAYWALL___
In September, Chinese imports from Iran settled at $415 million. The decline compared to August was driven by a significant reduction in Chinese imports of non-oil mineral products (HS Chapter 25) and organic chemicals (HS Chapter 29). The decline was partly compensated by slight growth in the value of imported plastic articles (HS Chapter 39), which reached $213 million, and aluminium (HS Chapter 76).
For the third consecutive month, the value of Chinese declared imports of Iranian oil remained close to zero. In August, Chinese oil imports from Malaysia peaked at an unprecedented value of $3.8 billion, confirming the growth trend that began in May 2022. At the same time, the value of crude China imported from the UAE, one of the intermediary countries through which China imports undeclared Iranian oil, dropped to a 12-month low at a value of $2.1 billion. When combined, the value of Chinese imports of Malaysian and UAE oil in September was $1.1 billion lower than in August. Consequently, for the first time since the beginning of the Russian invasion of Ukraine, the data may reflect the impact of Russian discounted oil marketed to Chinese teapot refineries which had previously been buying Iranian oil.
Chinese exports to Iran fell significantly, settling at $752 million. The value of exported machinery and electrical appliances (HS Section XVI) dropped to $298 million, down about $100 million from the previous month. Similarly, in September, Iran imported $128 million of Chinese-made cars and other vehicles (HS Chapter 87), the lowest level since March.
