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Soybean imports about 2 mln T lower than expected
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China's customs taking up to 15 days to clear cargoes
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Longer checks adding costs for traders and crushers
(Adds detail on inspection permits, trader comment)
BEIJING, May 9 (Reuters) - China's April imports of
soybeans fell 10% from a year earlier, customs data showed on
Tuesday, after stricter customs checks delayed cargoes.
The world's top soybean buyer brought in 7.26 million tonnes
of the oilseed last month, significantly less than the 9 million
tonnes expected by traders.
Analysts and traders attributed the drop to new customs
procedures that delayed the discharging of soybean cargoes for
up to two weeks.
"The strengthened inspection at customs continued during the
whole month of April and that resulted in lower imports than
expected," said Shanghai JC Intelligence analyst Rosa Wang.
Soybeans are crushed to make protein-rich soybean meal, a
major ingredient in animal feed, as well as oil for cooking.
Crushers had stepped up purchases since late last year to
meet an expected recovery in demand from China's livestock
sector.
However, Chinese customs in April began a requirement for
traders to wait for results of quarantine checks before taking
delivery of their soybeans up to two weeks later, said Dayue
Futures analyst Wang Mingwei.
Traders or crushers were able previously to take delivery
into their own warehouses while awaiting the inspection permit
before starting processing, said an industry official briefed on
the issue.
Now cargoes are held at customs warehouses until the permit
is granted.
The official requested anonymity because of the sensitivity
of the topic for the trade.
The change has not been announced publicly and China's
General Administration of Customs did not respond to a fax
seeking comment.
The delays have become "a big issue" for importers, said one
Singapore-based trader at a company with soybean processing
plants in China.
"Waiting time for ships has gone up to 15 days versus no
waiting at all in normal times. Importers are having to pay
demurrage costs," he said.
While costs have risen, soybean demand is falling short of
market expectations. Hog farmers have been losing money since
the start of the year, hurting demand for soymeal.
The delays have also pushed up soymeal cash prices in China,
said one Beijing-based trader, with the price in crushing hub
Rizhao rising 13% in April to 4,320 yuan a tonne. Higher prices will further reduce demand from farmers, he
added.
With April soybeans delayed until May unloading, May imports
should return to high levels, probably between 9 million and 10
million tonnes, Wang said.
Soybean arrivals for the first four months of the year
reached 30.29 million tonnes, up 6.8% year on year, the data
showed.
(Reporting by Ningwei Qin and Dominique Patton
Additional reporting by Naveen Thukral in Singapore
Editing by Jacqueline Wong, Stephen Coates and David Goodman
)
