OREANDA-NEWS. September 22, 2014. China's crude oil imports in September rose 7.4% year on year to 27.58 million mt or an average 6.74 million b/d, the second highest on record, preliminary data released by the General Administration of Customs showed.

Crude imports were last higher in April this year, when it averaged 6.81 million b/d. The volume last month was also up 13.1% compared with August.

The growth rate in September however, eased from the 26% year-on-year surge seen in the same month of 2013 on the back of a low base in September 2012.

Over the first three quarters of this year, China's total crude imports were up 8.3% year on year to 228.5 million mt, or an average of 6.14 million b/d, according to the data.

The year-on-year growth rate outpaces the 5.3% seen over Q1-Q3 last year.

GROWTH EASING IN RECENT MONTHS The higher crude imports this year have been attributed to expanded refining capacity as well as the need to build both strategic and commercial stocks, analysts have said.

The decline in crude prices since the peak in mid-June this year, when Dated Brent was around \\$115/barrel, has also supported buying. However, the growth in China's appetite for imported crude has eased in recent months.

In the third quarter alone, China's crude imports averaged 6.1 million b/d, rising 4.6% year on year. This compares with a 12.1% increase in the second quarter and 8.3% expansion in Q1.

According to Platts ship tracking software cFlow, at least 61 VLCCs arrived in China to discharge crude last month.

Among the total arrivals were at least two VLCCs and two Suezmaxes from Iran as well as a Suezmax from the Russian port of Novorossiisk, where Russia's Urals and Kazakhstan's CPC blend crude are loaded.

One VLCC from the UK's Hound Point Terminal in Scotland, where North Sea Forties Blend crude is loaded, also arrived in Tangshan in northern China early in September.

China did not export any crude oil in September.

Crude outflows have only occurred in January, February and August this year, bringing year-to-date volumes to just 360,000 mt, a 72.7% drop from January to September last year.

China's net crude imports therefore have risen 8.8% over the same period to 6.13 million b/d.