China's 2008 Crude-Oil Imports Rise at Slowest Pace in 3 Years

By Winnie Zhu

Jan. 13 (Bloomberg) -- China, the world's second-largest energy user, increased crude-oil imports at the slowest pace in three years in 2008 as a slowdown in the economy cut demand for the raw material used to produce auto fuels and chemicals.

Full-year imports increased 9.6 percent to 178.9 million metric tons, about 3.6 million barrels a day, from a year earlier, the Beijing-based Customs General Administration of China said on its Web site today. Imports climbed 12.4 percent in 2007 and 14.5 percent in 2006.

Economic growth in China has slowed for five consecutive quarters and its 9-percent third-quarter expansion was the weakest in five years. Demand for chemicals has declined as exports ranging for toys to electronics dropped because of the global recession. Car sales in Asia's biggest auto market have fallen in four of the past five months, according to state data.

China paid $129 billion for its crude imports in 2008, an increase of 62 percent from a year earlier, according to today's customs data. The import bill rose because benchmark crude oil prices in New York reached a record $147.27 a barrel in July.

Crude exports fell 28 percent to 4.16 million tons in 2008. The customs bureau revised its 2007 crude exports to 5.81 million tons. Based on the new figure, exports fell 8.4 percent in 2007 by volume.

Imports of fuel products, including gasoline and diesel, rose 15 percent to 38.85 million tons last year. The Chinese government boosted fuel stockpiles before the August Olympics Games and increased supplies in the aftermath of the Sichuan earthquake in May.

December Imports

China will boost imports of oil and natural gas to expand its emergency stockpiles at a time when global energy prices have declined and domestic fuel demand is being well met, the National Energy Administration said last month.

In December, crude imports increased 12 percent to 14.37 million tons from a year earlier as the country took advantage of falling fuel purchase costs to boost stockpiles. China paid $5.5 billion for shipments in December as crude prices fell by more than 70 percent from July's record.

Oil products imports stood at 3.63 million tons in December. Crude exports were 420,000 tons.

China, the world's largest coal producer and consumer, cut coal exports by 15 percent to 45.43 million tons in 2008 to ensure domestic supply, according to the customs data. Exports of the fuel stood at 4.47 million tons last month, falling from 5.73 million tons a year earlier. It didn't give imports figures.

To contact the reporter on this story: Winnie Zhu in Shanghai at wzhu4@bloomberg.net