image

Trade

China imports more sorghum in May but trade tipped to fall under tariff pressure

May volumes were up year on year despite anti-dumping investigation

PUBLISHED : Saturday, 23 June, 2018, 1:51pm
UPDATED : Saturday, 23 June, 2018, 9:38pm

China’s imports of sorghum in May rose 59 per cent year on year to 470,000 tonnes, customs data showed on Saturday, despite an anti-dumping move by Beijing a month earlier that had roiled the grains trade.

The surprisingly large number came even after China announced in mid-April that importers of sorghum from the United States would have to put up a 178.6 per cent deposit on the value of shipments.

US sorghum grain ships change course at sea after China slaps on import charges

Several cargoes of the US-grown grain, used in livestock feed and the fiery Chinese liquor baiji u, were already on the water at the time, but changed course and were sold in other markets.

But China dropped an anti-dumping investigation into US imports on May 18, and the data suggests that several cargoes that had not been diverted cleared Chinese customs in the final weeks of the month.

‘Second-half outlook stable’ for China consumer prices despite brewing trade war with US

Still, the May volumes were down from the previous month’s 640,000 tonnes, when buyers brought in large volumes of the grain ahead of the start of the anti-dumping deposit.

Volumes are likely to fall further after China included the grain in a list of products that will attract tariffs of 25 per cent from July 6.

The data from the General Administration of Customs does not break down the imports by country, but China imports nearly all of its sorghum from the United States in trade worth about US$1.1 billion in 2017.

Still, despite an escalating trade row with the United States that has cast a chill over the agricultural sector, other figures released on Saturday showed farm imports remained robust.

Barley imports rose 23.3 per cent to 770,000 tonnes, while corn imports surged to 760,000 tonnes versus last year’s 42,000 tonnes.

Wheat imports rose 24.8 per cent year on year to 630,000 tonnes.

Even pork imports in May were relatively strong at 115,322 tonnes, down 3.6 per cent year on year, but up from April’s 110,098 tonnes.

China scraps levy on US sorghum imports amid trade war talks

China has levied a 25 per cent duty on most US pork items since April 2 and will add further duties next month.

High domestic production of pork this year was also expected to curb imports.

Shipments of fresh and dried fruit and nuts rose 16.3 per cent year on year in May to 530,000 tonnes but dropped slightly from the previous month’s 560,000 tonnes.

China has also targeted US fruit and nuts with hefty tariffs.

China brought in 6.42 million cubic metres of logs in May, up 49.5 per cent from last year, after China stopped heightened inspections of the wood arriving from the United States.

Customs did not release the final batch of detailed May trade data, after advising last week that it had been temporarily suspended.