The appetite of the world's largest consumer of raw materials is growing.
China's crude oil and iron ore imports rose to a record high in 2016, according to data released by the Chinese government on Friday (), and coal purchases rose for the first time in three years. Rising domestic demand has led to a decline in exports of steel and aluminum, and exports of oil products have risen as China seeks to reform its refining industry and fuel standards.
China's iron ore imports rose to a record high of 1 billion tonnes, thanks to strong steel production and lower domestic coal production. At the same time, the export of steel and aluminum has ended years of expansion, due to the government's stimulus to promote the construction, infrastructure and manufacturing unexpected rebound in domestic demand increased.
In addition, China's iron ore exports are likely to rise further, thanks to the growth in low-cost supply from countries including Australia and Brazil. However, demand from steel mills is likely to decline due to falling demand in the property market and the government's debt problems and looming trade wars.
In 2016 China's crude oil imports grew at their fastest pace since 2010, with the lowest oil prices triggered by more than 10 years of hoarding, and the teapot refineries were allowed to buy more supplies.
Import growth slowed due to close to saturation, and the government began to tighten the import of small oil refineries.
Fuel exports rise because of crude oil processing manufacturers more allowed exporting products, fuel refining unit standard new on-line and more strict forcing those who are still looking for overseas buyers in the production of lower quality supply enterprises.
Refiners in neighbouring South Korea and Japan are worried that China's exports are likely to rise further in 2017, forcing manufacturers to compete for market share.
Coal imports reversed the downward trend in the first two years and hit the fastest pace in 4 years, easing the pressure on the global coal producers.
Global coal prices rose after Chinese President Xi Jinping ordered domestic coal producers to cut production capacity in 2016 to help ease oversupply and save the coal industry. China's coal imports are likely to fall again after regulators are scrambling to reverse some production restrictions, which will help boost output to a year high and pour cold water on coal prices.