China’s crude oil imports crash to near decade low

China's crude oil imports crashed to their lowest level in nearly a decade in June as the Iran war continued to disrupt Persian Gulf supplies and domestic refineries slashed processing rates amid weak fuel demand.

A Historic Drop

China imported 29.27 million tons of crude oil in June, equivalent to 7.12 million barrels per day, down 41.3% from the same month last year, according to customs data released on Tuesday. The figure marks the lowest monthly intake since October 2016 and extends a decline from May, when imports had already fallen to an eight-year low. June volumes fell a further 12% from May's depressed levels, representing the fourth consecutive monthly decline.anasalhajjieoa.substack+2

The plunge reflects the combined effects of reduced flows through the Strait of Hormuz, elevated oil prices that have eroded refining margins, and what Bloomberg described as Beijing holding off on scrambling for replacement barrels. Refinery run rates have fallen to a ten-year low as export curbs on refined products, imposed to safeguard energy security during the conflict, further dampened refiners' appetite for crude.economictimes.indiatimes+1

Broader Trade Context

The crude collapse stands in contrast to China's broader trade performance. The country's trade surplus widened to $125.62 billion in June, exceeding forecasts of $121 billion. Exports have continued growing at a solid pace, buoyed by AI-related demand and competitive pricing, with Reuters Thomson Reuters Corporation ↗ 2.92% forecasting 18.2% year-on-year growth in dollar terms.tradingeconomics+1

Chinese seaborne crude imports fell approximately 23% year-on-year across the first half of 2026, declining from roughly 1.87 billion barrels in the first half of 2025 to an estimated 1.44 billion barrels, according to Signal Ocean vessel-tracking data. Purchases are down roughly 4 million barrels per day from pre-war levels.hellenicshippingnews+1

Other Commodities Tell a Different Story

Natural gas imports fared better than crude. China's LNG imports in June were expected to be roughly in line with year-earlier levels at around 5.29 million tons, according to Kpler data, as the country ramped up buying ahead of summer demand.bloomberg

Aluminum exports told perhaps the most striking story. China's June aluminum shipments hit a record high, surging 45.4% year-on-year to top the previous month's 632,000 tons, as Chinese producers moved to fill global shortages caused by the conflict.mining

Preliminary tracking for July suggests only a modest recovery, with imports expected to rise about 2% from June but remain roughly 41% below year-ago levels.hellenicshippingnews