Anyone who ships goods to the nation with the most significant population, China, should feel optimistic now. The dragon is back and running at full speed.
This week, China gave tanker and dry bulk owners many encouraging data points. Now, it is free of the constraints of COVID.
Data from the National Bureau of Statistics revealed that the gross domestic product increased by 4.5% from January to March. Analysts expect a rebound in consumer spending compared to the same period the previous year. Besides, they predict increased government infrastructure investment-supported growth in the first quarter.
Analysts at the chartering site Shipfix shared their beliefs with the public. They see the growing expectation of China’s economic recovery among investors. Furthermore, China is on its way to gathering momentum in earnest during the current quarter. Many of the greatest names in finance actually strongly support such a viewpoint.
JPMorgan increased its 2023 China growth outlook to 6.4% from 6%. In response to the better-than-expected first-quarter results, Citi increased its forecast to 6.1% from 5.7%. Such an outcome resulted in the Chinese economy being “well on track on its post-COVID recovery.”
Commodore Research, an American dry bulk research organization, shared its opinion in a recent report. They said China’s consumer and industrial sectors kept improving significantly this year.
China should lead the global oil demand increase in 2023
In the meantime, excellent Q1 healthily impacted the oil demand. According to the International Energy Agency, China will account for most of the anticipated rise in world oil demand in 2023.
Prior to refinery maintenance, Chinese refineries processed record-breaking amounts of crude in March.
The National Bureau of Statistics of China revealed monthly statistics earlier this week. The results were extremely positive for oil dealers.
The most recent Short Range Outlook from the World Steel Association is upbeat towards China regarding dry bulk.
According to the association, this year will see a return to growth for the Chinese steel market after two years of recession.
Chinese iron ore imports in Q1 were the highest ever seen in the 2020s.
There are also news stories about other dry bulk products. According to recently revealed customs data from China, the nation imported 41.2 million tonnes of coal in March, up from only 16.4 million tonnes in the same month the previous year.
According to Sea Data, Q1 coal imports increased by over 40% compared to Q1 2015.
The resurgent Chinese desire is also apparent in grains. The Chinese wheat import prediction from the US Department of Agriculture for the marketing year 2022–2023 shows new highs. China upped the import from 2 million tonnes to 12 million tonnes, the largest total since 1995–1996.
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