China's August integrated circuit imports remained robust, supported by sustained demand stemming from a global AI infrastructure-driven memory chip shortage. Crude oil imports also rebounded during the period.

Latest data from the General Administration of Customs shows that, in U.S. dollar terms, China's August imports grew 28.2% year-on-year, accelerating from the 27.5% increase recorded in the prior month.

The most notable gains in import data were concentrated in the technology sector, underscoring China's continued strategic investment in critical technological areas. Lynn Song, chief economist for Greater China at ING, noted that the main areas of import growth remain tied to technology products.

Additionally, customs data released on Tuesday showed August crude oil imports reached 37.9 million metric tons, up 6.2% from the previous month. Inbound flows for the world's largest crude buyer are progressively recovering after sustaining an initial hit amid the Iran conflict.

Meanwhile, overseas sales of refined fuels such as gasoline and diesel climbed 29% from July levels, with fuel export momentum accelerating further. Integrated circuit exports saw explosive growth, with export value soaring 129.83% year-on-year.

Crude imports recover, natural gas imports ease in August

August data indicates that China's crude oil imports rebounded sharply month-on-month, with slight increases in cargoes from the Persian Gulf while refiners simultaneously expanded purchases from other sources.

Natural gas imports declined on a monthly basis, as the conflict pushed up seaborne LNG prices and higher landed costs dampened buyer appetite. Coal imports, however, remained elevated in August.

On the metals front, refined copper and copper concentrate imports both fell roughly 10% year-on-year, constrained by tight global supply conditions weighing on demand. Iron ore imports rose 3.1% year-on-year, while August soybean imports edged down 1.1% from the same period last year.

In volume terms, August imports of integrated circuits, iron ore and concentrates, and soybeans grew 6.72% and 3.15% year-on-year respectively, while soybean volumes slipped 1.12%. Refined fuel, crude oil, and steel imports declined 32.80%, 23.36%, and 13.22% year-on-year respectively.

In value terms, August import values for integrated circuits, coal and lignite, and unwrought copper and copper products increased 74.32%, 41.14%, and 21.95% respectively year-on-year. Refined fuel, crude oil, and steel import values fell 17.75%, 13.46%, and 0.36% respectively during the same period.

Fuel exports accelerate while integrated circuit shipments post explosive growth

On the export side, increased domestic crude supplies have accelerated the recovery of fuel shipments. Rising geopolitical tensions have created refining capacity bottlenecks and shutdowns globally, and China's recovering refined fuel exports are providing some buffer to international markets. August exports of gasoline, diesel, and other refined fuels rose 29% from July levels.

Additionally, data shows China's August aluminum exports grew 17% year-on-year, helping to fill the global supply gap caused by Persian Gulf supply disruptions. Steel export support has continued, with monthly shipments holding above 10 million tons in August. Fertilizer exports also jumped significantly month-on-month following relaxed export controls.

High-end manufacturing continued to lead China's export performance in August. Mechanical and electrical products, along with high-tech goods, maintained rapid growth, with integrated circuits, automobiles, and automatic data processing equipment standing out as key drivers of overall export expansion.

Specifically, mechanical and electrical products topped the export list at US$262.311 billion, up 32.84% year-on-year, maintaining a high share of total exports. Integrated circuit exports surged 129.83% year-on-year in value terms, while automatic data processing equipment and parts jumped 76.52%. Furthermore, high-tech product exports reached US$124.467 billion, up 56.88% year-on-year, with growth momentum continuing to accelerate.