By Michalis Voutsinas and Helen Vlassi
MACRO ENVIRONMENT
China’s GDP growth slowed sharply by 2.9 percent year-on-year in the last quarter of 2022, after expanding by 3.9 percent in the previous quarter.
During the currency of 2022, Chinese economy expanded by 3.0 percent, well below Beijing’s target of 5.5 percent annual growth, marking its slowest rise in almost five decades.
Retail sales and industrial production growth slowed further by 0.2 percent and 3.6 percent respectively year-on-year in 2022, compared to a record of 12.5 percent and 9.6 percent rise subsequently back in 2021
Exports form China shrank sharply by 9.9 percent year-on-year in December to USD 306.1, billion after declining 8.7 percent in previous month
Imports to China tumbled by 7.5 percent year-on-year in December to USD 228.07 billion, up significantly from a drop of 10.6 percent in November.
China posted a total trade surplus of USD 78.02 billion in December, compared with a USD 69.84 billion surplus in the previous month.
MANUFACTURING 1/2
China’s production of crude steel in December shrank by 9.8 percent from a year earlier to 77.89 million tonnes, as mills cut output to stem losses.
Average daily output in December stood at 2.53 million tonnes, or up 1.1 percent from previous month.
In 2022, China churned out 1.01 billion tonnes of crude steel, or down 2.1 percent from a year earlier.
MANUFACTURING 2/2
After a slump of 9.8 percent in the first eleven months, China’s real estate investment dropped by 10.0 percent yearon-year over the course of 2022, marking its first drop since 1999.
Property sales by floor area dropped by 24.3 percent year-on-year in 2022, continuing the double-digits fall for the 12th straight month.
China’s central bank announced the introduction of a dynamic mechanism, allowing cities to adjust the lowest limit for first-home mortgage rates.
CRUDE OIL
China brought in 48.07 million tonnes of crude oil in December, equivalent to 11.3 million barrels per day, or circa 4.2 percent up from a year earlier.
December’s reading stood 2.8 percent higher month-on-month, as state refiners raised purchases of Saudi crude oil due to its lower pricing versus November.
In 2022, crude imports totalled 508.28 million tonnes, down 0.9 percent from a year earlier.
Chinese independent refiners chased discounted Iranian oil, in order to use quotas before year-end.
IRON ORE
China brought in 90.86 million tonnes of iron ore in December, down by circa 8.1 percent year-on-year.
During the currency of 2022, China imported 1.11 billion tonnes of iron ore, a dive of 1.5 percent from 1.13 billion tonnes reported in the same period a year earlier.
December’s imports of iron ore fell sharply by 8.1 percent from November’s reading, as the surge of Covid cases delaying shipments.
During December, 77.89 million metric tonnes of crude iron ore has been extracted in China, or down circa 9.8 percent year-on-year.
On a monthly basis, iron ore output increased by 4.5 percent in December, up from 74.54 million tonnes reported in November.
From January to December, 1.01 billion metric tonnes of crude iron ore has been extracted in China, or down 2.1 percent year-on-year.
COAL
China imported 30.91 million tonnes of coal in December, or slightly down by 0.1 percent year-on-year.
On a monthly basis, China’s coal imports slipped by 4.3 percent.
From January to December, Chinese customs cleared a total of 293.32 million metric tonnes or circa 9.3 percent down year-on-year.
China’s government allowed utilities to resume coal imports from Australia in previous month, after an unofficial ban on coal trade with Canberra since 2020.
Reporting a rise of 2.4 percent year-onyear, China’s domestic coal output balanced at 402.69 million tonnes in December, or 12.99 million tonnes per day.
China’s domestic coal output in 2022 rose by circa 9.0 percent from a year earlier to 4.49 billion metric tonnes.
China’s daily coal output slipped by 0.4 percent month-on-month in December, as Covid outbreaks slowed demand from industrial users.
