July 13, 2004

China's 1H Soybean Imports Fall 11.9% To 8.94 Million Tons
 

China's total imports of raw materials, including edible oil, soybeans and crude oil, rose 65.9% on-year to $56.07 billion in the January to June period, the official Xinhua news agency reported Monday, citing General Administration of Customs data.

China's soybean imports declined 11.9% on year to 8.94 million tons in the first six months of 2004, while steel imports fell 2.5% to 18 million tons in the same period.

"Imports of crude oil have been growing fast, while that of soybeans and steel showed declines," the report said, without elaborating.

But the fall in the volume of imports of both soybeans and steel likely reflects the impact of regulatory and macroeconomic tightening measures in the first half of 2004.

Soybean imports from China's second largest soybean producer Brazil were severely disrupted in the second quarter of 2004 after China froze incoming cargoes from 23 companies, including large multinational traders such as Cargill Inc. and Archer-Daniels-Midland Co. (ADM) due to concerns about allegedly contaminated cargoes.

Normal trade in Brazilian soybeans only resumed last month with Brazil's implementation of stricter export standards insisted on by China's quarantine authority.