China's exports, imports fall sharply in December

(Reuters) - China's exports shrank sharply in December as global demand cooled, while imports also tumbled again as surging COVID infections and a property downturn weighed heavily on domestic demand, highlighting risks to the country's economic recovery this year.

Exports had been one of the few bright spots in the world's second-largest economy during the pandemic but deteriorated rapidly since late 2022 as consumers overseas slashed spending in response to central banks' aggressive rate hikes to tame inflation.

That weakness is expected to continue well into the new year as the global economy teeters on the brink of recession, but China's imports are expected to slowly recover in coming months after the government's abrupt dismantling of strict COVID measures in December paved the way for the economy to reopen, releasing pent-up demand.

KEY POINTS:

* Crude oil: Dec imports at 48.07 million tonnes

* Crude oil: Annual imports for 2022 fall 0.9% to 508.28 million tonnes

* Iron ore: Dec imports down 8.1% from the previous month at 90.86 million tonnes

* Iron ore: Annual imports for 2022 stood at 1.11 billion tonnes, down 1.5% from a year ago

* Soybeans: Dec imports at 10.56 million tonnes, up 19.3% from a year earlier

* Soybeans: 2022 imports down 5.6% year-on-year at 91.08 million tonnes

* Coal: Dec imports at 30.91 million tonnes

* Coal: 2022 imports at 293.2 million tonnes, down 9.2% from a year ago

* Copper concentrate: Copper concentrate imports touch a record high in 2022 at 25.27 million tonnes

* Copper: Dec imports at 514,049 tonnes, down 12.7% from a year earlier

Preliminary table of commodity trade data

Below are comments from analysts on the commodities data.

Comment on iron ore, which surprised on the downside:

ATILLA WIDNELL, MANAGING DIRECTOR, NAVIGATE COMMODITIES

"Given stable iron ore shipments from mainstream and non-mainstream suppliers in November/December, and correspondingly steady arrivals in Chinese waters through December, it's plausible that the COVID-19 tsunami sweeping the country may have temporarily slowed the efficient discharge and customs clearance of cargoes at Chinese ports."

Comment on soybeans:

ROSA WANG, ANALYST, SHANGHAI JC INTELLIGENCE CO LTD

"It's a little higher than our estimate of 10 million tonnes. The volume was very low in November and customs clearance quickened in December, so the volume was large."

LINKS:

For details, see the official Customs website

(www.customs.gov.cn)

BACKGROUND:

China is the world's biggest crude oil importer and top buyer of coal, iron ore and soybeans.

(Reporting by Asia Commodities and Energy team; editing by Uttaresh.V)