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China's LNG imports rise 29% in first half

China's imports of liquefied natural gas rose 29 percent in the first half from a year earlier, while purchases of coal climbed 61 percent, according to General Administration of Customs.

LNG supplies increased to 6.7 million metric tons through June this year with the delivered unit cost of the fuel was $549 a ton, according to the data. Coal imports, excluding lignite and including metallurgical coal, climbed to 113 million tons, delivered at an average of $118.55 a ton.

Crude futures, used to price contracted supplies of LNG, averaged $113.61 a barrel in London in the first half, which in calorie equivalent terms was about $19.59 per million Btu.

Qatar Air vies with Hainan Airline for Saudi flights

Qatar Airways Ltd and China's Hainan Airlines Co are among carriers vying to offer domestic flights in Saudi Arabia after an initial 14 applicants were cut to a shortlist of seven, the kingdom's aviation regulator said.

Khalid al-Khaibary, a spokesman for the Saudi General Authority of Civil Aviation, said in an interview that other operators still in the running after an assessment of financial strength and experience include Gulf Air of Bahrain and rival Bahrain Air.

Domestic flights in the largest Arab economy are currently limited to Saudi Arabian Airlines and discount carrier National Air Services. Al-Khaibary said that with travel demand increasing as the population of 28 million grows by 3 percent annually, more than one license may be awarded, with winners to be announced in October with flights starting by the fourth quarter of 2013.

Oil imports from Iran surpass 2011 average

China bought more crude from Iran in June than it did on average last year before European Union-imposed sanctions against the Persian Gulf nation went into force.

Iranian oil shipments rose 17 percent from May to 2.6 million metric tons, or about 635,000 barrels a day, according to Bloomberg calculations from data e-mailed Monday by General Administration of Customs. China bought 2.3 million tons of crude from Iran on average each month, or about 557,000 barrels each day, last year.

China, the Islamic nation's biggest crude customer, calls its purchases "completely justified and legitimate". The US and EU set new rules on the trade meant to curb elements of Iran's atomic program they say could support nuclear weapons.

Mobius raises prospect of rate cut in interest rates

China will do whatever it takes to reach its economic growth target of 7.5 percent this year, according to Mark Mobius, the executive chairman of Templeton Emerging Markets Group.

There is a good chance the Chinese government will cut interest rates again this year, Mobius said at a news conference in Kuala Lumpur. The current stock market decline in Shanghai is due to sentiment, he said.

Even 7 percent growth is very high growth for China, and the stock market will improve again once investors realize growth is high, he said.

Nation's diesel imports drop 68% in June

China's diesel imports were at 103,189 metric tons in June, down 68 percent from a year earlier, the Beijing-based General Administration of Customs said in an e-mail on Monday.

Liquefied natural-gas purchases were at 1.21 million tons, up 16 percent, and coal imports, including lignite, totaled 27.19 million tons, it said.

China buys less bauxite, nickel ore in May

China's imports of bauxite tumbled to the lowest level in more than three years, and those of nickel ore fell 12 percent from an all-time high in May after Indonesia, the main supplier, tightened exports.

Arrivals of bauxite, the ore used to produce aluminum, tumbled to 1.02 million metric tons, the lowest since April 2009, from 6.27 million tons in May, according to data from the General Administration of Customs on Monday. Indonesia supplied 187,355 tons, compared with 5.56 million tons in May, while Australia shipped 649,998 tons, the data showed.

"A small amount of the bauxite that shipped out in May arrived in June," said Guo Qiuying, an analyst at Beijing Antaike Information Development Co.

China seen cutting US corn orders on higher prices

China, the world's second-biggest corn user, may import fewer shipments from the United States than forecast due to rising costs since the worst drought in decades hit the top grower, a State-owned researcher said.

Imports in the year beginning Oct 1 may total 3 million metric tons, compared with 5 million tons projected by the US Department of Agriculture, the China National Grain & Oils Information Center said in an e-mailed report on Monday. The center forecast shipments of 6 million tons on July 11.

Imports from the US, based on the Chicago Board of Trade benchmark, to be shipped early next year will cost about 3,000 yuan ($470) per ton on arriving at Chinese ports after all costs, according to the center.

Tibet's foreign trade surges in first six month

Southwest China's Tibet autonomous region reported $1.02 billion in foreign trade in the first half of this year, up 170.3 percent year-on-year, customs authorities in Lhasa said on Monday.

The growth rate was 162 percentage points higher than the national average, Lhasa's customs office said.

In June alone, Tibet reported $290 million in imports and exports, up 221.6 percent year-on-year, it said. The region's border trade in the January-June period totaled $520 million, up 80 percent from the same period last year.

New loans in July may hit 600b yuan, reports say

The credit growth will be relatively stable in the second half of the year. New loans of this year will reach between 8 trillion yuan ($125.6 billion) to 8.5 trillion yuan and new credit will be probably seen at 600 billion yuan in July, reported Xinhuanet.com on Monday, citing the industry analysis reports.

Reports from most institutions indicate that, with the support of the macro-control policies, the economic growth rate is expected to see a slight rebound in the future.

The consultation report from Anbound Consulting Group said that, in the context of the economic downturn pressure mounting, a modest easing of credit is necessary.

The Financial Research Center of Bank of Communications predicts that the incremental credit will be relatively stable in the second half of the year and the average monthly new loans will be 500 billion yuan to 600 billion yuan.

CNPC in talks with Ecuador over $12.5b refinery

China National Petroleum Corp, the country's biggest oil producer, is in talks with Ecuador's government over a potential investment in the OPEC member's $12.5 billion Pacifico refinery project, an Ecuadorian minister said.

Chinese oil companies have been buying overseas oil and gas assets to secure supply to the world's second-largest oil consumer and maximize returns on oil produced overseas.

The Pacifico refinery complex is a joint venture between state-run Petroecuador and Venezuela's state oil company PDVSA.

WTO to investigate export restrictions on rare earths

World Trade Organization judges will probe China's export quotas and tariffs on rare earths, tungsten and molybdenum following complaints by the United States, the European Union and Japan that the curbs break global commerce rules.

China says the limits are designed to protect dwindling natural resources and the environment. China produces more than 90 percent of the world's rare earths, 17 chemically similar metallic elements used in the defense, renewable-energy and electronics industries by companies such as Ford Motor Co.

China cut domestic output and reduced export quotas in July 2010 by 40 percent, affecting ties with major users including the US and Japan, where buyers reduced usage after prices rose in the first half of 2011.

Agencies

(China Daily 07/24/2012 page14)