Hormuz sinks Chinese tanker tonne-mile demand to 10-year low, but restocking lies ahead
- Chinese crude oil imports stayed low in May, as refiners pivot to domestic stock draws and reduced downstream production
- Tanker rates from the MEG to China have flatlined but remain elevated because of the associated risk, as tonne-mile demand plunges to a 10-year low
- Stockpiles built at the end of 2025 have reduced China’s exposure to the current Hormuz choke
- But further restocking is expected to cover current stock draws, supporting freight rates
Beijing’s foresight to shield itself from turbulent geopolitical risks has allowed China to reduce its crude import dependence, as shipping continues to grapple with the crisis in Hormuz